This past year was a pivotal year in the housing recovery in the Twin Cities. The Twin Cities Metro Area shifted from a buyers to sellers market over the course of the year. The number of sales were up nearly 9% while the median sales price increased over 14% for a year-end median sales price of $192,000. At the same time, lender-mediated sales continue to decline resulting in fewer homeowners that are upside down on their mortgage….only a few years ago distressed sales made-up over 50% of sales compared to 26% today.
The Mullins Group projects continued positive housing market metrics in 2014 for the Twin Cities Market. The following outlines where we project the market will go in 2014:
Pricing: Expect more moderate price growth of 4%-5%.
Sales: Sales activity momentum will continue and sales will be higher than 2013. With rising prices we expect investor activity will start to wane as pricing creeps up.
Inventory: As pricing has increased we expect more homeowners to list their home as they are no longer underwater on their mortgage. Supply continues to be low, but hopefully listing activity will increase for the peak spring and summer selling seasons.
Distressed Properties: Expect to see even fewer foreclosures and short sales in 2014; this is a great for everybody.
Rental Housing: Expect increasing rents as vacancies are still at historic lows. New luxury product in Downtown Minneapolis during the summer of 2014 will ease vacancy rates.