April has brought many things this year, including a dive in the Twin Cities home sales. Another dip has been marked as inventory goes down for residential sales due to the lacking ability for the younger generations to purchase into the home life.
According to the latest Minneapolis Area Association of Realtors report, April has signified yet another drop in home sales due to low inventory.
The number of homes that were listed for sale was 25.1% lower last month when compared to April of 2017, which boasted 8,958 properties. A director of research for economics made a remark that this has been the lowest inventory of any April since 2003, not boding well for the coming months.
So far we have noticed that year-over-year close sales have dropped 5.2%, meaning a smaller market and fewer sales.
Some research experts are saying that the reason for these declines are because of multiple factors. Some homes available for people are just too expensive for everyone, limiting the potential buyers severely. While others, generally suburban communities,that have new homes, feel too far from transportation, culture and lifestyle needs, discouraging the potential buyers.
Prices Going Up, Sales Going Down
In April, sellers have listed 7.2% fewer home on the market, resulting in 7,321 properties missing. This isn’t new however, as this marks the sixth month in a row involving declines compared to last year of the same time.
As for the median sales prices, they have gone up by about 8.6% resulting in $266,000.
So naturally if people aren’t buying the available homes, what are they buying? Where is everyone living?
Single-family home sales have dropped 6.4% in April, while the sales of previously owned homes have dropped 5.6%. But the increase is shown in other areas.
New construction sales have risen 13.2%, with condo sales by 3% and townhome sales by 1%.
People seem to be foregoing the whole yard and home, for smaller but still comfortable spaces, a trend that speaks highly on the problems we face for our residential pricing and the Twin Cities populations capabilities.
Kontor Realty Group
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