Those looking to get on the Twin Cities property ladder will need a bigger chunk of change than ever before, with median house prices hitting another record in April.
Last month, the median house sold for $281,000, a record in the Twin Cities market and an increase of 5.2 percent on last April, when it was $267,000, and a 14.69 percent increase on April 2017, when the median home sold for $245,000.
That's according to the latest figures from Minneapolis Area Realtors, which also revealed that properties in the Twin Cities market sold on average for 99.4 percent of asking price, the first time it's gone above 99 percent since last August.
Once again, the record prices are being driven by short supply and high demand in the market for homes priced under $300,000.
We reported earlier this year how some homes in the $500,000-plus range were struggling to get asking price, while there was huge competition for those sub-$300,000, some of which have been selling for above asking.
But there are signs that things could be slowing down, with the number of new listings in the Twin Cities increasing by 4.5 percent in April – the seventh time in eight months new listings have gone up.
Meanwhile closed sales have fallen by 6.9 percent, and the average amount of time a house is spending on the market rose by 5.2 percent to 56 days (though this is the mean, the median is 21 days.)
"In conjunction with other indicators, this suggests the market is improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times," says the MAR market update.
“Things still seem to be rebalancing a bit,” added Todd Urbanski, President of MAR. "Low and stable rates have definitely helped, and so has the ongoing economic expansion."