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Annual Housing p Market Report - Twin Cities Metro e3li
<br /> FOR RESIDENTIAL REAL ESTATE ACTIVITY IN THE 16-COUNTY TWIN CITIES REGION
<br /> MINNEAPOLIS AREA Association
<br /> .r REALTORS"
<br /> Overall, 2017 was a year marked by unprecedented natural List Price Received:Sellers received, on average, 98.3
<br /> disasters, shifting political winds, a variety of social percent of their original list price at sale, a year-over-year
<br /> movements and an ongoing-but perhaps waning- improvement of 0.9 percent.As sales prices are expected to
<br /> synchronized global economic expansion. In the U.S.,that increase further in 2018,this should bring original list price
<br /> expansion is now the third longest on record, while the longest received at sale up as well.
<br /> ever stretch of uninterrupted private job growth was cut short
<br /> by hurricanes and wildfires. In fact, continued job growth and Known unknowns such as interest rates,the tax bill impact,
<br /> persistently low unemployment is challenging employers and global growth and political tides are rightfully garnering what's
<br /> pressuring wages. left of our time-challenged attention span. Rates are upwardly
<br /> mobile with a data-dependent Federal Reserve, and 30-year
<br /> But labor isn't the only scarce commodity these days. From mortgage rates could approach the 4.5-5.0 percent range by
<br /> the humblest crop and fur trades thousands of years ago to year-end.
<br /> today's highly complex and increasingly automated capital
<br /> markets, as long as markets have existed, so have shortages The tax bill-a gentle jab in the shoulder here but a real wrench
<br /> and surpluses. in the spokes on the coasts-diminishes two of the major tax
<br /> advantages of real estate ownership: interest and tax
<br /> The U.S. housing market has been short on supply- deductibility. Some of those sins are atoned for by a higher
<br /> sometimes dramatic in land-constrained, coastal regions with standard deduction and more favorable tax treatment
<br /> strong labor markets and business growth.The Twin Cities is elsewhere(i.e., pass-through income, 1031 exchanges and a
<br /> not unique, at least not in this regard. Despite the shortage, corporate rate cut).
<br /> sales and prices are stomping higher-for now. But nothing
<br /> goes straight up or down forever. As it turns out, neither party has a monopoly on bad legislation.
<br /> And speaking of,the party in the White House tends to perform
<br /> Barring any unforeseen events, expect ongoing but more tepid poorly during midterms. In light of a host of indicators and
<br /> growth in 2018. Buyers may test sellers' pricing, especially in public sentiment,the 2018 midterms could mark shifting
<br /> the upper brackets. Supply-demand dynamics favor sellers majorities in one or both legislative chambers.
<br /> below$500,000, buyers above.The under-$200,000 segment
<br /> will seemingly continue its vanishing act, with builders unable On a more practical note, prices are likely to rise at a rate of
<br /> to alleviate the shortage and still pencil out a profit. Meanwhile, 2-3 times inflation. Unit sales may face headwinds if sellers and
<br /> infill, densification, conversions and in-law suites offer some builders can't increase inventory in the most in-demand price
<br /> relief. ranges. Days on market and absorption rates are likely to
<br /> continue to decline as the ratio of sales to list price should rise
<br /> sales: Pending sales increased slightly by 0.5 percent, further.
<br /> landing at 61,277 to close out the year. Closed sales increased
<br /> similarly by 0.2 percent to finish 2017 at 61,168. Healthy fundamentals like consumer confidence,
<br /> unemployment, GDP, income growth and household
<br /> formations should have a larger impact on housing than any
<br /> Listings:Year-over-year,the number of homes available for cryptocurrencies or prefab green construction techniques
<br /> sale was lower by 27.5 percent.There were 6,830 active you've never heard of.As usual,there's no shortage of
<br /> listings at the end of 2017. New listings decreased by 2.2 distractions, but market sentiment is mostly positive. Here's to
<br /> percent to finish the year at 76,159. Home supply was once a prosperous 2018!
<br /> again lower than desired in 2017.
<br /> Distressed:The foreclosure market has dwindled from its Table of Contents
<br /> peak several years ago. In 2017,the percentage of closed 3 Quick Facts
<br /> sales that were either foreclosure or short sale decreased by
<br /> 43.4 percent to end the year at 4.2 percent of the market. 5 Property Type Review
<br /> 6 Distressed Homes Review
<br /> Prices: Home prices were up compared to last year.The
<br /> overall median sales price increased 7.0 percent to$246,000 7 New Construction Review
<br /> for the year. Prices are expected to rise at a slow rate in 2018. $ Area Overviews
<br /> Single Family home prices were up 6.8 percent compared to
<br /> last year, and Townhouse-Condo home prices were up 7.2 17 Area Historical Prices
<br /> percent. 26 Historical Review
<br /> 25 Current as of January 9,2018.All data from NorthstarMLS.Report©2018 ShowingTime. 2
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