HOUSING PRICES HIT 5 YEAR HIGH- Fewer foreclosures, tight market led to price gains

Twin Cities housing prices have hit a five year high and sales have risen to the highest level since 2005.  2013 started out strong for home sales, but has tapered a bit into the fall and winter. This tapering of sales activity has been attributed to a rise in mortgage interest rates and the government shutdown decreasing overall consumer confidence.  Even as sales activity has seen some tapering in 2013, home prices have not been decreasing.   A smaller supply of listed homes and a reduction of distressed or foreclosure properties have driven home prices upward.   Rising home prices should help increase the homes available for sale, as fewer homeowners will be underwater on their mortgages.

The Twin Cities has experienced increased sales throughout most of the metro area.  This growth has paralleled or exceeded that of most other metro areas nationwide.  Many experts predict that the real estate recovery will continue into 2014, but probably will not match 2013.  A stable real estate market that continues to recover at a healthy and sustainable rate should provide opportunities for buyers and sellers.

Full Article-Buchta, J. (2014, January 14). Housing prices hit 5 year highMinneapolis Star Tribune.

Retrieved from www.startribune.com


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