Minneapolis, Minnesota (June 12, 2013) – May was an impressive month for the 13-county Twin Cities residential real estate market. With 5,872 pending sales, buyer demand continued its ascent, surging 18.5 percent to its highest level since June 2005. Seller activity was also up, as new listings rose 26.2 percent to 8,332 units, representing the largest gain in new listings since January 2006 and the highest number since April 2010. Buyers have 14,375 properties to choose from – 22.3 percent fewer than in May 2012 but 11.6 percent more than in January 2013.
- New Listings: Highest Since April 2010
- Days on Market: Lowest Since January 2007
- Median Sales Price: Highest Since August 2008
The median sales price for the metro area rose 15.1 percent to $194,450. That’s the highest median sales price since August 2008. A shift in product type is driving this improvement. As recently as February 2011, foreclosures and short sales occupied 61.5% of all sales activity. In May 2013, these two distressed segments together comprised just 26.9 percent of all sales. The percentage of all new listings that were distressed in May 2013 fell to 18.6 percent, its lowest level since September 2007.
“With the recent disparity between massive buyer demand and sluggish seller supply, it is encouraging to see a substantial increase in traditional listings,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR).
Although new listings were up 26.2 percent overall, traditional new listings were up 49.9 percent, while foreclosure new listings were down 15.4 percent and short sale new listings were down 43.4 percent. With 15 straight months of year-over-year price gains, multiple-offer situations and just 3.4 months’ supply of inventory, the market landscape that once favored buyers has tilted toward sellers.
The traditional median sales price was up 7.3 percent to $220,000; the foreclosure median sales price was up 18.7 percent to $137,700; the short sale median sales price was up 4.4 percent to $141,000. On average, traditional homes sold in 78 days, foreclosures sold in 87 days and short sales lagged at 174 days.
“This is still about product mix. We once filled our grocery bag with ramen noodles,” said Emily Green, MAAR President-Elect. “Today we’re buying organic, grass-fed sirloin steaks. Grocery prices haven’t increased much, but the value of what we’re buying has. Traditional homes tend to be of a higher quality and better maintained than foreclosures or short sales.”
Click here to view the May 2013 Monthly Twin Cities Real Estate Indicators.
All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from NorthstarMLS. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and
In every real estate transaction, there are a number of roles that real estate agents can play. In the State of Minnesota, the law requires that “early in any relationship” real estate agents need to discuss with buyers and sellers what type of agency they desire.
Here are the brief descriptions of the five types of representation:
- Sellers Broker: A real estate agent who lists a home for sale is representing the seller and acts on their behalf. All the agents in the listing real estate company’s office are representing the seller.
- Subagent: A real estate agent who is working with a buyer but represents the seller is considered a subagent of the seller and must act in the seller’s best interest.
- Buyer’s Broker: A buyer can be represented by a real estate agent by entering into a “right to represent” contract with an agent. In this case, the real estate agent would be acting in the buyer’s best interest.
- Dual Agency: Dual agency occurs when one broker or salesperson represents both parties to a transaction or when two salespersons licensed to the same broker each represent a party to the transaction. In this capacity, the real estate agent(s) cannot advocate exclusively for either the buyer or seller.
- Facilitator: The real estate agent is not representing either buyer or seller in a fiduciary capacity.
The fiduciary duties that a real estate agent has to a buyer or seller that they are representing include: loyalty, obedience, disclosure, confidentiality, reasonable care and accounting.
If you would like a copy of the full “Agency Relationships in Real Estate Transaction” form, please feel free to contact us at email@example.com and we’ll provide you with a copy.
If you have driven toward the Minneapolis area in the last few months, you will see that homes are being built everywhere. Chaska, Carver, Chanhassen, Waconia, etc. are booming with new construction. So, why isn’t there any new construction going on in Hutchinson?
With about 300 residential lots ready to be built on in Hutchinson, it seems odd that no one is building.
According to a recent article in the Hutchinson Leader, there has only been one building permit issued for construction of a single family home in 2013! (Since the article appeared a couple of weeks ago, there have been three more building permits pulled for construction this spring.) Compare that to the years of 2000 – 2006 when 20-40 homes were being built each year!
Hometown Realty in Hutchinson, MN has earned the reputation in the Hutchinson area as a real estate company that is knowledgeable, professional, honest, reliable and able to “get the job done.” We take the confidence that buyers and sellers place in our company seriously.
We have 10 full time real estate agents, two licensed staff personnel, and one part time staff person. All the experience and knowledge that this group of people, bring to our company is priceless.
We are proud to be Hutchinson’s “Hometown“ real estate team since 1985.
Our goal is to provide quality service ensuring the highest level of representation to our real estate buyers and sellers. During 2012, Hometown Realty had 40 percent more listings sold in the city of Hutchinson than any other real estate company (according to the Regional Multiple Listing Service) which shows that we are accomplishing our goal.
More than 250 years’ experience is not expensive… it’s priceless
I’ve written before about how much living in a small town means to me.
During a recent heavy snowfall, I met my dad and step mom for dinner at one of the locally owned restaurants in Hutchinson. The snowfall was heavy throughout the evening and when we were done, we walked out to the parking area. Here was one of the owners of the restaurant with a shovel in his hand. He had shoveled a path to my dad’s car so they would not have to walk in the snow. Then he proceeded to brush off all the snow from the car!
Needless to say, this owners’ thoughtfulness was beyond kind. I will continue to eat at this restaurant and won’t forget the kindness they showed my dad and his wife. This is just one example of the advantages of living in a small town such as Hutchinson, MN.
When it comes time for you to upgrade, downgrade or purchase your first home in Hutchinson or the surrounding communities of McLeod county be sure to contact the MN real estate professionals at Hometown Realty.
Only in a small town.