Closed home sales in Minneapolis in November reached 4,672 units, up 13 percent from 12 months prior, according to the Minneapolis Area Association of Realtors. MAAR projects year-end closed sales of 58,000 units, up 2.6 percent from the previous record of 56,528 units in 2003, and a 1.6 percent increase from an earlier projection.
November’s median home price of $222,000 increased 8.8 percent as compared to 12 months prior, and has remained stable for the past six months averaging in the $220,000 range, according to statistics released by the Regional Multiple Listing Service of Minnesota.
November’s pending sales in the greater Twin Cities remain at a record level. Pending sales of 4,258 units, increased 19.6 percent as compared to November 2003. Year-to-date pending sales are up 6 percent compared with 12 months prior. The MAAR projects year-end pending sales of 63,800 units, up 5.5 percent from the previous 60,458 units in 2003. A pending sale is a sale where an offer has been accepted, but the transaction has not yet closed.
New listing activity in November increased 13 percent compared with the same period a year ago. Year-to-date new listings are 94,103 units, a 13.8 percent jump as compared to 12 months prior. Supply of homes for sale in the Twin Cities remains at a healthy 4.5 months.
The Housing Affordability Index has remained steady from the previous month at 139 leading into November. An index reading of 139 means the median family income is 139 percent of the necessary income to qualify for the median priced home using 20 percent down payment, 30-year fixed rate mortgage. Income levels, home prices and interest rates will affect the Housing Affordability Index.
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