Numbers Look Good for the Minnesota Housing Market From 2012

Updated: 01/15/2013 7:21 AM By: Todd Wilson

Realtor Nate Gerard showed Mike Holmquist and fiance Renee Frericks a house for sale in Lake Elmo. The couple is getting married in July so they want to find a place to live soon.

"Our agent has shown us 20 something by now. And we've liked two of them. We kind of got beat to the punch on one and the other one we just put an offer in and some contingencies kind of made that deal fall through," Holmquist said.

There's good news for Mike and Renee as they take their time finding the right house, all out bidding wars have not begun just yet. According to the Minneapolis Area Realtors Association, a decreased supply, strong demand and higher prices in 2012 shows a market shift. Gerard says, houses are down to an average of 108 days on the market.

"If houses are priced right right now and they are in decent condition, they are selling usually in less than a month," Gerard said.

The situation varies from neighborhood to neighborhood, but here are the numbers overall. 48,641 homes were bought in 2012. That number is up 16.9 percent from 2011 and the highest since 2006. Inventory levels dropped to the lowest level in 10 years. And the median sales price was up to $167,900. Renee says, she likes having options.

"It's great for us that even though inventory is low we have the time to look at different house and be a little picky," Frericks said.