2017 Annual Wrap-Up: Home Prices Reach Record High; Home Sales Reach 12-year High

The big story of 2017 was threefold: the median sales price reached an all-time high; closed sales reached a 12-year high; and inventory levels reached a 15-year low. Sales nearly broke their all-time record, but fell just 12 units short of their all-time 2004 high. Seller activity declined slightly for a second year. Near-record sales activity combined with weaker seller activity exacerbated the supply shortage. For-sale housing supply fell to a 15-year low. This shortage has created a competitive environment where multiple offers have become more common. Sellers are receiving strong offers in record time, but this fast-paced market can frustrate some consumers. Days on market fell to an 11-year low. Absorption rates fell to 1.4 months of supply at year-end, also a 15-year record low.

2017 by the Numbers

• Sellers listed 76,159 properties on the market, a 2.2 percent decrease from 2016
• Buyers closed on 61,168 homes, a 0.2 percent increase from 2016
• Inventory levels for December fell 27.5 percent compared to 2016 to 6,830 units
• Months Supply of Inventory was down 26.3 percent to 1.4 months
• The Median Sales Price rose 7.0 percent to $246,000
• Cumulative Days on Market declined 13.8 percent to 56 days, on average
• Changes in sales activity varied dramatically by market segment
  • Single-family sales decreased 1.1 percent; condo sales rose 2.0 percent; townhome sales rose 5.7 percent
  • Traditional sales rose 3.7 percent; foreclosure sales fell 42.8 percent; short sales fell 49.9 percent
  • Previously-owned sales declined 0.7 percent; new construction sales rose 13.9 percent

Quotables

“Record prices and near-record sales, as well as inventory shortage and affordability concerns took center stage. Our region is extremely high-performing when it comes to homeownership, employment, education and quality of life. Expect homeownership to remain an attractive opportunity moving forward,” said Kath Hammerseng, president of the Minneapolis Area Association of REALTORS®.

“The strong job market and economy is positive for both buyers and sellers as REALTORS® can help ensure they smoothly navigate the homebuying, selling and rental process,” said Man Huynh, president of the St. Paul Area Association of REALTORS®.

For other year-end residential real estate information and for stand-alone December 2017 data, please visit www.mplsrealtor.com and www.spaar.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180123006457/en/