New year, same old story for the St. Paul real estate market in the early going of 2016. According to a recent statement from the Minneapolis Area Association or Realtors, market activity is up all throughout the Twin Cities which led to higher sales prices in February, but a limited inventory remains a concern as we head into the traditionally busy spring season.
Single-family homes in the area are once again the top selling property-type through February, while sellers are currently receiving 95.3% of their original list price. Pending sales last month also jumped by 6.7%, while the median home price also increased by 3.7% from last year to $207,395.
Even despite a 3% increase in new listings, inventory has still dropped an astounding 19.4% to less than 11,000 total listings, making it especially tough on young and first-time home buyers. And to make matters worse, residential new construction has also hit a two-year low during the month of February, so inventory woes in both Minneapolis and St. Paul don’t appear to be subsiding anytime soon.
But with great job growth, low interest rates, and even encouraging numbers in wage growth continuing to sweep the Twin Cities, market conditions still seem to be heading in the right direction overall.