Twin Cities Market in ’07
Like other areas of the country, Minneapolis/St. Paul has been experiencing a downturn in what had been a hot five-year hyper-real estate market. While 2007 doesn’t promise a significant recovery, it does appear to place the Twin Cities back on track with a slight uptick in home sales and prices. Nothing to pop the champagne corks over, but at the least, its a step forward.
The Minneapolis Area Association of Realtors projects that the number of closed home sales in the Twin Cities metro area during 2007 and the median sale price is expected to increase approximately 1 to 2%. Local industry watchers believe ’07 will be a relatively unexciting year as sellers step back to avoid increased competition and buyers step forward to enjoy lower interest rates and seller flexibility. With an over seven month supply of homes on the market at the end of December, the Twin Cities will definitely provide a lot of opportunity for buyers and motivated sellers to make a connection.