Twin Cities Housing Market - Seller's Market

There are Seller Markets within the Twin Cities Area

Earlier this week I wrote about a list of areas that had Balanced Markets in November. I ended up making a few adjustments to my calculations today, which changed a few things and I ended finding which market segments in the Twin Cities are currently at a Seller’s Market.

(They included Maple Grove, St. Paul Highland Area, St. Paul Marriam Park/Lex-Ham Area, Blaine, Eagan, Rosemount, Savage, Shakopee, Andover, Burnsville, Roseville, Richfield, Apple Valley, Circle Pines, South St. Paul, North St. Paul, Anoka, Fridley and New Hope.)

Absorption Rates and Months of Inventory can vary a little bit depending on how they’re calculated as well as when data is collected. These two stats can be updated on a daily basis if someone is so inclined. As long as the results are basically saying the same thing within about .25 – .50 points of each other there’s not much harm in this variation. You really want to look at the overall trend for not just the community the home is in, but also the price range the home fits under. If the overall trend is improving then I may recommend pricing a home at or above market value. If the trend is worsening then I may recommend pricing the home below market value. Aside from looking at recent sales to support the list price this is the pricing strategy I use when I work with Sellers.

As for current market conditions, the Twin Cities is in a Balanced Market at the moment with some communities experiencing a Seller’s Market. Some segments of the communities I mentioned above may not actually be a Seller’s Market, but the overall trend in those communities is a Seller’s Market. The next step would be to look at the price ranges of homes to see what kind of conditions they’re experiencing. Most likely inventory levels are at a point where lower priced homes are experiencing a Seller’s Market while higher priced homes are experiencing a Buyer’s Market.

Since inventory levels increase from January – Memorial Day in Minnesota’s Seasonal Real Estate Market we won’t know for sure if the Twin Cities will maintain a Balanced Market until that period of time is complete.

Below is a video the Minneapolis Area Association of Realtors Released.

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Market Data Disclosure - The NorthstarMLS and the Minneapolis Area Association of Realtors is our source for data. We classify The Twin Cities area as a Seven County Area - Hennepin, Ramsey, Anoka, Washington, Scott, Carver and Dakota. We use a 12 Month Moving Average to make our calculations. Days on the Market, Per the MLS, is from list date to Pending Status (Offer Accepted)