It's hot in Minneapolis and yes; it may have something to do with the weather, in rhetoric. The housing market in Minneapolis usually turns cold with the season at this time of the year but at this point, it is the opposite.
According to CNBC, 16 percent more contracts have been executed to purchase existing homes at the end of last month compared to the same time line a year ago, based on the report released by Minneapolis Area Association of Realtors.
John Schuster, a real estate agent with Coldwell Banker Burnet in Minneapolis said, "It should be a cold time of year, but our market is really hot. It's not as cold as it usually is, so that's helping the market. We're selling homes with multiple offers."
National Center for Environmental Information says that the average recorded temperature in the Twin Cities last month was 41 degrees compared to just 25 degrees the previous year. Last months average is also 7.5 degrees higher than the average in the last three decades.
One reason seen on the rise of the values is the limited supply of homes to be purchased. Compared to a year ago, the supply is actually 25 percent lower. Aside from that, if there is a home for sale, it is selling faster as well, the average markets days pegged at 70. Currently, the the median Minneapolis home price is at $216,000, 4 per cent higher if again, compared to a year ago.
Schuster added, "Inventory is down because literally all of the distressed sales are off the market. Three years back it was over half the listings we had."
Overall, Minneapolis actually fared better to other major cities when it comes to foreclosures, such as Las Vegas, Phoenix and not so much of Florida but it still suffered considerably.
"It's really just finally come back to a traditional buyer/seller market. We're able to find the true market value because the hedge fund money is finally out," Schuster concluded.
Based on trend, the majority of home sales in Minneapolis happens between February and July; and like the other real estate agents, Schuster is hoping there would be enough listings to meet the demand since sellers tend to wait for a better pricing.
