Weekly Market Update: 2014 Annual Wrap Up

Strong demand and higher prices were some of the positive developments seen in 2014. Market recovery continued to take hold. Sellers were motivated by rising prices and quick market times, and so they listed more properties for sale. Closed sales activity ended the year at the second highest level since 2005. Even though the active supply of homes for sale fell to a 12-year low, home buyers had more choices during the critical spring and summer selling season. Homes sold in less time, which was great news for sellers. Absorption rates were flat and still slightly favored sellers but 2015 should see more balance. Foreclosure activity fell for a third straight year, while new construction and condo activity continued to soar in and around downtown.

2014 by the Numbers

• Sellers listed 73,768 properties on the market, a 2.3 percent increase from 2013 and the highest level since 2010

• Buyers closed on 49,541 homes, down 6.9 percent from 2013 yet the second highest figure since 2005

• Inventory levels for December fell 7.2 percent from 2013 to 11,822 units, the lowest level in 12 years but May 2014 inventory was 13.4 percent higher than May 2013.

• Months Supply of Inventory was flat at 2.9 months, tied for a 12-year low

• The Median Sales Price rose 7.2 percent to $205,739, marking a seven-year high

• This measure of home prices is 11.8 percent below its 2006 peak and 37.2 percent above its 2011 valley

• Cumulative Days on Market was down 6.0 percent to 78 days, on average—an eight-year record pace

• Lender-mediated properties made up a significantly smaller share of overall activity across multiple metrics
  
• 12.2 percent of all New Listings were lender-mediated (either foreclosures or short sales), down from 21.6 percent in 2013 and 34.7 percent in 2012

• 16.4 percent of all Inventory was lender-mediated, down from 26.1 percent in 2013 and 38.7 percent in 2012

• 16.5 percent of all Closed Sales were lender-mediated, down from 26.3 percent in 2013 and 39.7 percent in 2012

Source:  Minneapolis Area Association of Realtors, article by Aubray Erhardt