Homes MSP Real Estate Blog: Twin Cities Market Update - February median sale price up 6% year-over-year

March 12, 2010

Twin Cities Market Update - February median sale price up 6% year-over-year

Twin Cities market statistics for February were released this week and for the second month in a row median sales price for the Twin Cities metro area showed a year-over-year increase... the first time since 2006. February's 6.0% increase over last year was also the strongest increase over the previous year since 2005. Even though $159,000 this year over $150,000 last year may not seem like much it still is a positive change, likely reflecting fewer foreclosure sales this year than last year at this time.

The number of closed sales have been abnormally skewed the last couple of years... first with the end of 100% financing in September 2008... then with the expected end of the first-time homebuyer tax credit the end of 2009. It will be interesting to see the effect of the tax credit this year, with the closing deadline the end of June.

New listings took a new direction in February by showing an increase both over last year and the previous month.

Total inventory of homes for sale also took a jump up in February... it will be interesting to see if it develops into a new pattern.

Changes by price range continue to migrate up, with the % change of sales showing a 12-month increase creeping up into the $190K-$250K category in February. Overall the months supply of inventory is up slightly over last month in all categories, which is typical for this time of year. Compared to last year at this time, however, the 3.1 months supply in the under $120K is down from 6.1 last year... and the 32.8 month supply in the $1M+ category is up from 24.8 a year ago.

Sales growth over the past year has been strongest in the townhouse style, although the months supply of inventory has shown improvement in all styles over the last two years.

The months supply of houses and townhouses have been very close the last few months while condos continue to lag behind. The plight of condos may become even worse, as FHA spot approval financing is no longer available and the whole complex must be approved before FHA financing can be used to purchase a condo.

The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors. Click here for links to local reports for 125 metro area communities.