The Twin Cities housing market continued to show steady growth in 2019 according to the annual market wrap-up from the Minneapolis Area REALTORS\u00ae and the St. Paul Area Association of REALTORS\u00ae. At a joint news conference in St. Paul, the associations announced a growing economy, favorable rates and a persistent scarcity of homes for sale have uplifted home prices for eight consecutive years. Lower mortgage rates helped offset declining affordability brought on by rising home prices.<\/p>\n
\u201cIn our market, like others across the country, lack of housing inventory has been a recurring theme for buyers.\u00a0It continued in 2019 as buyers, looking for entry level options and more affordable choices, felt the most pressure.\u00a0Buyers, however, have remained persistent resulting in gains, both in sales volume and price appreciation,\u201d said Patrick Ruble, President of the Saint Paul Area Association of REALTORS\u00ae<\/sup>.\u00a0\u201cFortunately, the region\u2019s economy continues to grow, unemployment remains low and we are seeing growth in wages.\u00a0We have a healthy market and look forward to some of the sticking points, such as the limited inventory, easing in the coming year.\u201d<\/p>\n Sellers reversed three years of declines with a modest 0.2 percent increase in new listings in 2019. Buyers overturned a sales decline in 2018 with a 0.8 percent increase in purchases. The ongoing housing shortage has led to a competitive environment where multiple offers are commonplace, frustrating some consumers. Therefore, sellers are receiving strong offers in near record time. Market times did, however, increase 2.1 percent from 2018 while the ratio of sold to list price declined 0.1 percent. These two metrics could be early indicators of a shifting balance.<\/p>\n \u201cOverall 2019 was a good year for real estate. After a slow start, activity picked up once rates fell back below 4.0 percent mid-year,\u201d said Linda Rogers, President of the Minneapolis Area REALTORS\u00ae<\/sup>. \u201cThe second half of the year saw consistent sales gains, as record prices and declining affordability were offset by favorable rates and wage growth. Buyers were persistent despite tight inventory\u2014particularly under $300,000. That\u2019s no surprise, as the Twin Cities are a wonderful place to live, work and play.\u201d<\/p>\n Rates remained attractive during the year. Despite starting the year around 4.5 percent, mortgage rates fell to 3.7 by year-end. Single family and new construction sales led the pack; so it\u2019s no surprise that four-bedroom homes and homes over 2,500 square feet saw the largest gains. There\u2019s still a \u201ctale of two markets\u201d dynamic at play: the under $350,000 or first-time buyer segment is severely undersupplied but also in high demand. The move-up market for homes over $500,000 is much better supplied, giving buyers more options and negotiating room.<\/p>\n \u201cThe Twin Cities housing market is a reflection of what\u2019s been happening statewide,\u201d said Bob Clark, President of the Minnesota Association of REALTORS\u00ae<\/sup>. \u201cRealtors across Minnesota finished the year with slight increases in closings, new listings and continued growth in home prices.\u201d<\/p>\n