Area Realtors reported Wednesday that residential real estate prices across the
Twin Cities region are on the rebound; the median price of homes sold in March
was up 6.4 percent from the same month last year—the first such year-over-year increase since October 2010.
In Eagan, the median sales price of homes climbed to $172,000 so far this year, a 9.2 percent increase over the median sales price for the same period in 2011. The median sales price in March alone for Eagan homes was up 15.6 percent compared to March, 2011, according to a report from the Minneapolis Area Association of Realtors.
The number of closed sales in Eagan has risen 35.7 percent so far this year, whole the percentage of the original listing price received also increased from 89 percent to 92.5 percent, according to the association's report. The number of new listing coming on the market and the inventory of homes for sale both saw declines in the first quarter—signs that the demand for homes is catching up with supply.
Across the metro area, the price-per-square-foot measurement of home value increased for the first time since June 2010. Pending home sales were up 20.4 percent in March and are already higher than any month in 2007, 2008 or 2011.
The months supply of inventory, the amount of time it would take to sell every home on the market, fell nearly 40.percent to 4.6 months. That’s the lowest reading for any month since January 2006. Compared to the year prior, sellers are getting a greater share of their asking price from buyers.
Andy Fazendin, MAAR’s president-elect, was reluctant to declare the downturn
in housing prices at an official end. But he added that, “It’s looking increasingly
likely the worst is behind us. We continue to see encouraging signals from the
market that allow for an improving view on residential real estate in 2012.”
The improved median price is, in large part, a reflection of the changing
market. “Distressed” properties sold through foreclosures and short sales, which
tend to bring much lower prices than homes sold the traditional way, made up Sonly 34.6 percent of all new listings in March, the smallest share since July 2008.
Meanwhile, Realtors say an unusually warm March helped boost buyer activity,
and the market received additional boosts from low interest rates, affordable
prices and a sense of urgency caused by tightened inventories. The number of
homes for sale continued to drop, down 27.5 percent from last year to 17,081
active listings, the lowest inventory reading for any month since January 2004.