Submitted by Stacy Zachman – Edina Realty
What’s happening in the STMA and surrounding area real estate market you ask? A lot. And nothing. All at the same time.
This is one of the hottest sellers’ markets I have seen in several years in real estate. We have an extremely low inventory which is making it difficult for buyers to find houses that aren’t going into multiple offers within the first few days. Especially in the under $300,000 range.
The Minneapolis Area Association of Realtors via the NorthstarMLS, shows that the STMA area actually has just over a 40% reduction in available homes for March of 2016 versus March of 2015. We currently have 36 homes available under the $239,000 price whereas last year, it was up to 62. Buffalo’s lack of homes is much less noticeable compared to last March with 71 homes currently available under $239,000, while last March there were 88 available.
As far as days on market, we are seeing homes “flying off the market” and in many cases, multiple offers on these homes. In the STMA and Buffalo school districts, homes from the $187,000-$238,999 price range have an average of 69 and 68 days on market respectively, based on their March 2016 findings.
Average sale price has also gone up in the last year. STMA in March of 2015 had an average sale price of $217,064 while March 2016 is showing about a $17,600 average sale price or 13% increase. Buffalo School District had an average sale price of $217,744 in March of last year and March 2016 is showing about a $13,700 sale price increase, or 6% in the Buffalo school district to $231,496.
So what’s the bottom line? We are in a great market to buy OR sell! While there are fewer homes to choose from, interest rates are still great and we haven’t seen the typical spring market price increase hit yet! If you are looking to sell, call a qualified REALTOR and get your house on the market ASAP, while there are still buyers clamoring for the few homes available.