The results are mostly in, and the evidence is overwhelming. Housing not only outperformed most other sectors of the economy, but for the first time in half a decade, there was meaningful market recovery in 2012. For 2013, a few things seem likely. Expect interest rates to remain low and rents to rise, which will continue to drive buyer activity. Sellers should return to the marketplace in light of the improvements. Prices should remain firm and show moderate to strong gains. Foreclosure activity and job growth remain wildcards, but momentum is heading in the right direction.
In the Twin Cities region, for the week ending December 29:
• New Listings decreased 40.1% to 358 • Pending Sales decreased 12.6% to 442 • Inventory decreased 30.0% to 12,916
For the month of November:
• Median Sales Price increased 16.4% to $172,200 • Days on Market decreased 26.5% to 103 • Percent of Original List Price Received increased 3.6% to 94.2% • Months Supply of Inventory decreased 38.6% to 3.5