Yet another record high for Twin Cities house prices has been set, with the average sale in June costing 7 percent more than last year.
The Minneapolis Area Association of Realtors (MAAR) announced this week that the median sale last month hit $259,000. In June 2016, it was around $242,000.
It means that young professionals hoping to get onto the housing ladder face an increasingly difficult task getting the money together for a down payment, while at the same time competing in a fierce market that sees new listings disappear sometimes within hours.
There are few bargains out there, with the press release from MAAR noting that buyers paid, on average, 99.5 percent of list price last month.
Half of the sales made in the metro area in June went for MORE than the list price.
Lack of supply drives prices higher
And choice for first-time buyers is getting smaller and smaller as well, with the number of houses on the market the lowest it's been for June since 2003.
There's only around 2.5 months of housing supply, and much of this is because of a declining number of foreclosure and short-sales going on the market.
This lack of supply is encouraging competition between prospective buyers, pushing prices higher, MAAR notes.
While supply is dwindling, the demand to buy is huge. Some 7,430 homes changed hands last month, a record for June in the Twin Cities.
“The numbers confirm what agents already know about this market,” said Cotty Lowry, Minneapolis Area Association of REALTORS® (MAAR) President.
“We are still very thirsty for listings. That means sellers who list well-presented, well-priced homes are being rewarded, and they’re finding the move-up market to be less competitive.”
GoMN's Tip Jar column has this guide for first-time buyers on how to get ahead in this competitive housing market.