The City Council and City staff frequently receive updates from the Minneapolis Area Association of REALTORS® (MAAR) regarding housing sales and activity in our City. Yesterday, I received a 2015 “year in review” email from MAAR. Their summation of the past year was that housing demand was at a 10-year high while listing activity reached a 5-year high. Much of this was attributed to low interest rates and an improving labor market.
- New Listings in Eden Prairie decreased 2.0 percent to 50.
- Pending Sales were up 17.2 percent to 68.
- Closed Sales increased 10.1 percent to 76.
- Days on Market was up 2.9 percent to 105 days.
- The Median Sales Price decreased 8.1 percent to $290,950.
- Inventory levels grew 3.8 percent to 270 homes.
- Percent of List Price Received at Sale increased 0.1 percent to 97.3 percent.
- Month’s Supply of Inventory was down 3.3 percent to 2.9 months.
- Distressed sales made up 5.3 percent of all Closed Sales.
- Single-Family homes made up 62.0 percent of all Closed Sales.
- New construction properties made up 6.6 percent of all Closed Sales.
Keep in mind that these statistics are kept by the real estate industry and are not the same as some of our City statistics on housing valuations. For example, of all the homes that were sold in 2015, the median sale price was $290,950 as indicated above. However, the overall median valued home for 2015 in Eden Prairie is $360,300. That is an increase from $343,800 in 2014. These latter values correspond to all single-family residential homes in our City — they are not solely for the homes that sold in 2015.
Looking ahead, MAAR believes there are reasons to be optimistic in 2016. They say that job and wage growth are both accelerating and that the Twin Cities area continues to have one of the lowest unemployment rates of any major metropolitan area. They also state that the election cycle, the pace of interest rate hikes, inventory improvements, new construction activity and the financial health of the consumer will be key indicators to watch this year.
It will indeed be interesting to watch how the housing market unfolds in 2016.