Twin Cities home prices still on rise
Friday, May 10, 2013
March data for the Twin Cities real estate market showed signs of a continuing rebound, including rising prices and more new construction.
The Twin Cities' median sale price in March was $209,900, the highest seen since last summer, according to the University of St. Thomas' monthly Residential Real Estate Price Report Index. That median sale price also was up 6 percent compared with the March 2012 median of $197,950.
But the Twin Cities market remains tight because of a relatively small inventory of homes for sale.
The improving market overall is being fueled in part by an improving employment market, said Herb Tousley, director of real estate programs at St. Thomas. The state's unemployment rate of 5.4 percent is below the national rate, and Minnesota added 50,800 jobs in the past six months.
A challenge for the market, though, is the availability of lots for new construction. The number of Twin Cities lots with access to utilities has been decreasing for several years, Tousley said. "As the shortage continues, home builders are finding they have to pay premium prices for desirable lots," he said.
Originally published: 05/10/2013, Pioneer Press