The Annual Report on the Minnesota Housing Market was just released. The report publishes a myriad of housing data from the previous calendar year based on statistics and home sales. Here are a few takeaways.
SUMMARY
- Many local markets transitioned from buyer's markets to seller's markets.
- Closed sales are up and days on market are trending downward.
- Percent of list price is rising.
- Buyer and seller confidence was boosted by low mortgage rates, still affordable prices, and better jobs.
SALES (BUYERS)
- Low mortgage rages, employment opportunities, a rising stock market, rising rents, and shrinking inventory left consumers with a sense of empowerment and urgency.
- 2013 marked more closed sales than any of the previous five years.
LISTINGS
- Inventory levels fell through most of the year.
- Active listings are expected to increase through 2014.
- Rising prices will help some homeowners transition to "above water" equity positions.
- With the exception of first-time buyers, most moves in our market are "inventory neutral" - i.e. the seller turns around and purchases a home.
DISTRESSED PROPERTIES
- Consumers are purchasing fewer distressed properties as lenders have fewer of them on the books.
- There are fewer mortgage delinquencies.
- The percentage of distressed closed sales relative to traditional sales fell from 32.7% in 2012 to 22.7% in 2013. You might recall this number was nearing 50% in 2010.
PRICES
- Prices and sales are expected to continue their ascent, though at a tempered pace.
- Watch for more move-up buyer activity, less investor activity, more seller activity, and more new construction activity.
QUICK FACTS FOR SCOTT COUNTY
- 26.7% of sales were lender-mediated.
- 48.7% of home sales in Scott County had four or more bedrooms.
- The $300,000 to $400,000 price range was the range with the shortest days on market. (We certainly saw this in West Savage!) This was a 24.7% drop from the 2012.
- The $100,000 and below price range had the highest number of days on market (due to short sales and the lengthy time it takes to get these transactions sold.)
- There were 2,466 closed sales in Scott County in 2013. This is a 12.1% increase from 2012.
- Sellers in Scott County received an average of 96.6% of list price in 2013.
- The median sales price in Scott County has risen to $226,600. This is up 15% from last year.