December 2, 2014 (Newswire.com) - The Twin Cities home price appreciation rate slows to a balanced pace in Q4 of 2014, according to CoreLogic and Northstar MLS. The Twin Cities is noted nationally for top home values, home affordability, and moderately priced homes that sell very well. Market favor that previous tipped in the seller's hands is now more evenly shared.
"Coming into cooler weather months, the Twin Cities is experiencing a more balanced and fair real estate market. Prospective home buyers find the time line is more relaxed to look at homes for sale as home price appreciation eases into a better pace," says Jenna Thuening owner of Home Destination. "Upon announcing that their home was for sale, and before inventory levels buoyed upward, sellers had bids come in immediately. Now buyers can view a home and safely consider it a day or two before submitting a purchase offer and find the listing is still available."
Closing out the year 2015, those who worried about another housing bubble are relaxing. The pace of home price appreciation is tempering, narrowing extremes, and evening off into more stable conditions. CoreLogic CEO and President Anand Nallathambi stresses that balanced home price growth is just one aspect of the full equation, but an important factor.
The degree of pendulum swings between housing favoring those who purchase homes versus those who sell them may be evening out. A deeper look at CoreLogic's report brings to light a trend that the national real estate market is shifting towards a better balance between buyers and sellers.
Home prices in the 13-county metropolitan area have adjusted to rise at a more moderate pace, creating a better balanced negotiating platform between home buyers and sellers. The former trend that was a financial boon for sellers and a tight race against the clock for some buyers has become more even.
The median price in the 13-county metro area was $205,000 in November, up 2.5 percent from the same month last year, according to data from the Minneapolis and St. Paul Area Associations of Realtors. That is a more moderate rate that the higher clip of home price appreciation rates found in the first three quarters of 2014.
Twin Cities' home sellers received, on average, 97.1% percent of their list price in November so far. That is down -0.2 percent from a year ago, the trade groups' housing data shows. A comparative market analysis and a home appraisal are the standard methods for determining a home's value.
According to Northstar MLS, current home price appreciation rates in the last year are:
Eden Prairie: $296,750, up *6.4%
Chanhassen: $319,900, up +4.2%
Chaska: $240,000, down -4.0%
Edina: $375,000, up +7.1%
Excelsior: $423,000, up +3.2%
Medina: $525,000, up +2.0%
Minneapolis: $205,000, up +9.4%
Minnetonka: $274,000, down -1.8%
Orono: $567,759, up +14.7%
Shakopee: $205,000, up +5.1%
Tonka Bay: up +29.9%
Twin Cities region: up +7.9%
"More balanced home prices are rounding out the year as Twin Cities home price appreciation rates moderate," adds Thuening. Would-be home buyers can know which neighborhoods have the highest home appreciation rates before making a purchase. As the Twin Cities housing market has adjusted to a better balanced pace, they will also appreciate less frenzy in the bidding process.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in Eden Prairie, Minnesota. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all home buyer types, from individuals seeking to buy their first home to individuals moving-up to a home in a higher price range, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.