According to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the growth in buyer and seller activity in the 16-county Twin Cities metro continues to climb above 2019 levels. Seller activity rose 1.3 percent from last November while new purchase agreements were up 13.4 percent over last year. That marks the strongest November pending sales figure since 2004 and the highest closed sales since at least 2003.

This year, the fall and winter markets are behaving more like a spring market since activity was delayed from the spring and summer months. While sellers only listed slightly more units than last November, pending and closed sales were up significantly. Pending sales often act as a leading indicator of future demand while closings lag.

“The Twin Cities housing market continues to exceed expectations,” according to Patrick Ruble, President of the Saint Paul Area Association of REALTORS®. “Despite record sales figures, the lack of adequate supply—particularly affordable units—continues to frustrate buyers.”

Historically low mortgage rates, shifting work and learning patterns, health concerns and other factors are driving this sellers’ market. While all areas and price points are unique, sellers are getting strong offers early on. On average, sellers obtained 100.2 percent of their original list price

Projections for Buyers

  • Buyer activity will be up 2-4% over last year.
  • Housing affordability will be down 4-6% over last year.
  • Interest rates will likely remain below 4%.

These are the numbers that really show the continuation of 2017 market conditions into 2018! Buyers are still going to be active in 2018! While interest rates are projected to increase this year, even with the increase, the interest rates are still historically low. Buyers want to buy, and with low inventory, prices are going to continue to rise.

Whether you’re thinking of buying or selling in this market, Camarata Numrich can make your transaction smooth and successful! 

If you’d like to discuss the real estate market in greater depth, give us a call today!