MINNEAPOLIS & SAINT PAUL, Minn.--(BUSINESS WIRE)--The big story of 2016 was twofold: the median sales price reached an all-time high; while closed sales reached an 11-year high. Closed sales nearly broke their all-time record, but fell 0.3 percent short of their all-time 2004 high. However, a supply shortage has created a competitive environment where multiple offers have become more common. Foreclosure activity fell for a fifth straight year and is back below 2007 levels.
2016 by the Numbers
- Sellers listed 76,531 properties on the market, a 1.1 percent decrease from 2015
- Buyers closed on 59,988 homes, a 6.2 percent increase from 2015 and the highest figure since 2005
- Inventory levels for December fell 26.3 percent to 8,197 units compared to 11,125 in 2015—a 14-year low
- Months Supply of Inventory was down 30.4 percent to 1.6 months, also a 14-year low
- The Median Sales Price rose 5.5 percent to $232,000, which is an all-time record high
- Cumulative Days on Market declined 15.8 percent to 64 days, on average (median of 33)—a 10-year record low
Changes in sales activity varied dramatically by market segment
- Single-family sales rose 5.1 percent; condo sales rose 9.5 percent; townhome sales rose 9.9 percent
- Traditional sales rose 10.0 percent; foreclosure sales fell 25.0 percent; short sales fell 31.1 percent
- Previously-owned sales rose 5.7 percent; new construction sales rose 14.9 percent
“The most important achievement of 2016 was erasing the losses in prices and equity caused by the downturn. As sales surpassed their 10-year high, Twin Citizens demonstrated that they are just as committed to homeownership as ever. Despite some manageable challenges, a favorable affordability picture, attractive rates, job growth and wage growth will continue to sustain a healthy real estate market,” said Cotty Lowry, President of the Minneapolis Area Association of REALTORS®.
“Now is a great time for those considering listing their home, as buyers are looking for more options. With median sales price at an all-time high, now is a great time to find out the current value of your home,” said Tina Angell, President of the St. Paul Area Association of REALTORS®.