The Grossman Group’s listing at 1836 Wordsworth Avenue in Highland Park has now been sold (sale pending) in under a week. As previously mentioned, we are seeing a lot of activity and interest in our listing on 2077 Scheffer Avenue, also in Highland Park, in this past week. Inventory is low, reducing the competition, and sales prices are high. The market, especially in our local area, is booming, despite the cold weather and snow. Like the groundhogs, we’re seeing signs of an early spring!
Here are some of the factors contributing to the hot market in Minneapolis, Saint Paul, and Highland Park.
Minnesota’s economy is booming, fueling relocation to the area and higher sales prices
Gallup’s annual job creation report has ranked Minnesota number one in the nation for job creation, and recently, CNBC ranked Minnesota best in the nation for business. (Kare11, January 31). Last August, Forbes ranked Minnesota the fastest growing state for technology jobs. Says Charlie Weaver, executive director of the Minnesota Business Partnership, “The business outlook in Minnesota for 2016 is pretty strong because we are blessed with several large corporations, a lot of different industries.” Currently, he reported, Minnesota has more jobs than employees, making Minnesota a hotbed for relocation.
Economists predict further growth in housing
Economists see more growth for US economy and housing in 2016, reports the Star Tribune (January 19). Says David Crowe, chief economist for the National Association of Home Builders, “There are a number of positive indicators out there that make me believe … this will be a good year for the economy and for housing. Not only is housing finally driving some of that, housing is finally moving at a much faster pace than the economy.”
With today’s announcement that unemployment has fallen below 5% with wages rising, (New York Times, February 5) we will continue to see gains in the housing market as buyers have more to spend and take advantage of historically low mortgage rates. Says Diane Swonk, an independent economist in Chicago, “We are likely to have to two rate hikes this year, probably in June and December, but the wage gains are important, so March can’t be ruled out.”
Twin Cities home sales activity has hit a 10 year high
Reports the Minneapolis/St. Paul Business Journal (January 20). The number of homes sold in the Twin Cities is up 13.7% from 2014, and the median sales price increased by 7%. “As sales hit a 10-year high,” said Judy Shields, President of the Minneapolis Area Association of Realtors, “Attractive rates, rising rents, job growth, wage increases and the lowest unemployment rate of any major metro area will continue to be positive factors for real estate.”
2015 ended with the highest existing home sales since 2006, reports Forbes and the Star Tribune (January 22). “Sales of previously-owned homes surged 14.7% in December in the largest monthly increase the National Association of Realtors has ever recorded, the trade group said Friday.
Thanks to the robust finish, 2015 ended with 5.26 million existing-home sales, the highest figure since 2006, when annual sales were 6.48 million… Existing-home sales prices have now increased on a year-over-year basis for 46 consecutive months.”
The Real Estate market is peaking
Reports the Minneapolis/St. Paul Business Journal (February 5), according to a panel of experts at a forum hosted by the business journal. “The Twin Cities real estate market is peaking from an investment and expansion standpoint in almost every sector.”