HPDL Market Statistics
The neighborhood real estate market was historic on many levels.
Just how "historic" has the market been? Let's look at the December 2015 statistics for the Hale, Page, and Diamond Lake neighborhoods.
December Market Statistics Compared to Those of the Past:
Median Sales Prices: Highest for December since 2006, just before the housing market crash!
Month's Supply of Houses: 2.1 (LOWEST INVENTORY IN OVER 11 YEARS!) This means if nobody listed a home after December, it would take only 2.1 months to sell off the remaining homes for sale.
Pending Sales: More Homes Sold this past December than any December since 2004!
Median # of Days on Market before a listing sells: 52. On average it took homes 52 days to sell during the month of December. Compare that to the Dec. '11 number of 92.
Percent of Original List Price Received: 96.7% Highest December rate since 2005.
Number of Showings for 2015 compared to 2014: Up 8% Outside of the summer months of 2015, we had more showings every month during 2015 than the previous year.
(Data from Bookashowing.com & NorthstarMLS.)
I think we can all agree that those numbers are pretty incredible, no? There are many ingredients involved in creating this kind of real estate market: 1. Simple supply & demand economics. When inventory for homes is down and buyer demand is high, homes sell quickly and for top dollar. 2. Interest rates are STILL LOW! Yes, the Fed decided to increase short term interest rates by a quarter percent when they met in December, however, that has not affected mortgage interest rates so houses still remain affordable. 3. The Unemployment Rate is 3.5% currently in MN, the lowest it has been since 2001! The Bureau of Labor Statistics recently announced the Twin Cities tops the list of all Large Metropolitan areas in the country with the lowest unemployment rate at 2.7%.
If you're asking yourself, are these numbers pointing to another housing bubble in the making? Would would say no. There shouldn't be any reason to believe there is a bubble in our current market. Why? Because the market is being driven by qualified buyers that can afford the homes they are buying AND because the job market is currently strong, meaning homeowners shouldn't be at risk of losing their jobs.
The fact is, we need more people who want to sell their home! Buyers are often frustrated when they start searching because there just aren't enough homes available to purchase. Conditions haven't been this good since just before the housing bubble burst. There really is no better time to sell!
Happy New year!
Interest Rate Estimates Currently (Vary based on credit and income)
(30 Year Fixed):
Jumbo (for loans over $417,000): 4%
15 Year Fixed Conventional: 3.25%
15 Year Jumbo: 3.75%
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Today's Market Trends for HPDL Market Statistics *
* All data pertains to single-family homes