Twin Cities Housing Market

Area Summary

The Twin Cities is typically defined as a 13 county area with Minneapolis and St. Paul at the center and goes east just past the Wisconsin border, west into parts of Wright and Sherburne County, North into Insati and Chisago County and South ending in Dakota and Scott County. I’ve decided to concentrate more on the areas that are in close proximity to each other instead of stretching out to the more rural areas of what is considered part of the Twin Cities Area.

Links

Regional Information, School Information,

Regional Parks, Live in MPLS/St. Paul,

Metro MSP

Median Home Price

The median home price I came up with is based on the towns I have listed on this site. The source I used is from the Minneapolis Area Association of Realtors. You can find the document at this location. Data on this site is updated quarterly.

Data Explanation

Current Market Conditions = 5.5 Months of Inventory = Balanced

Months Supply of Inventory = The Amount of time it will take to sell the current inventory of homes
Buyer’s Market = More than 7 months of inventory
Balanced Market = From 5 to 7 months of inventory
Seller’s Market = Less than 5 months of inventory

February 2010

Not surprisingly, the Twin Cities Market has started February where it left off in December. Homes under $350K are experiencing balanced conditions while homes above $350K are experiencing a Buyer’s Market, while the overall Twin Cities Market is in balance, but is still near a Seller’s Market. We’ll have to see what activity there is in March and April to know for sure what direction the housing market is going.

This is the time of year more activity begins. Individuals are thinking of buying and/or listing their home so they can move in by summer.

January 2010

Homes in the $350K – $500K have now entered a Balanced Market while the overall Twin Cities Market is nearing a Seller’s Market and homes above $500K are still in a Buyer’s Market. However, things do slow down over the winter and there will be a better picture of market conditions when we get into March.

November 2009

Home prices where exaggerated during 2002-2005 during a Seller’s Market when the goverment was making an attempt to get everyone into a home. From 2005 – 2007 the median price was relatively stagnant and the market quickly shifted from a Seller’s in 2005 to Balanced conditions and a Buyer’s Market in 2006. The housing market went into a major correction in 2007 and dropped by about $30,000 in 2008. Some factors include sub-prime mortgages, foreclosures and lowered standards past by the government to try to get everyone into a home. If you view more areas around the Twin Cities you’ll notice the lower priced markets where hit first, as early as 2006 and had the biggest fall going into 2008.

In the summer of 2009 prices began to level off as the lowest priced homes were being absorbed. Homes in the median priced range soon followed along with homes priced from $250K-$350K, which have recently entered a balance market. Homes between $350K-$500K have nearly left the Buyer’s Market while homes at $500K and above face a Buyer’s Market as 2009 comes to a close.