Think People are moving out of the city? Thank again.
It’s been a tumultuous year for the U.S. housing market, and the Twin Cities is as prone as any region to increased housing demand, low inventory, higher prices, and competitive sales. According to Minneapolis Area Realtors, the decade-long sellers’ market is continuing as the median sales price of homes in the Twin Cities rose 7.9% to $340,000, and new listings fell 11.5% from October 2020.
Another trend that market watchers are seeing is the steady increase in the percentage of home sales in the Minneapolis/St. Paul urban market. Condo sales were up more than any other property type over the past year, rising 3.8%. And in August, closed sales in Minneapolis reached their highest level since 2005 as housing demand in the city continues to grow.
For the past 18 months, first-time purchasers have been taking advantage of low interest rates and better work-from-home options. Many buyers are looking for urban single-family homes, townhomes and condos that allow them to have easy access to everything that city living has to offer including great restaurants and shops, a world-class park and trail system, top-notch theater and entertainment venues, good infrastructure and public transit, and a strong job market.
Inventory is still low in Minneapolis and St. Paul, but housing permits for single-family and multi-family properties are up, and steady growth and development in both cities make the future look bright for the urban market.
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