Apple Valley Home Sales Prices Exceed 2011 in March, Q1

The real estate downturn may be nearing an end in the Twin Cities area if the newest numbers are any indication.

The Minneapolis Area Association of Realtors released statistics this week that show 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 Apple Valley, the news on the home prices front has looked similarly promising during February and March this year.

The median sales price for March this year was up 5.8 percent from the median sales price in March 2011—$140,737 compared to $133,000 a year ago. In February, it exceeded the February 2011 mark by nearly 20 percent ($151,700 compared to $126,500).

Realtors say an unusually warm March helped boost buyer activity in the Twin Cities, and the market received additional boosts from low interest rates, affordable prices and a sense of urgency caused by tightened inventories.

In Apple Valley, however, home sellers didn't receive quite the boost from the warm weather. The number of closed sales fell short compared to last March—50 compared to 63—but Apple Valley homes sales for all of 2012 still outpaced first quarter 2011, 149 to 134.

But regionally, realtors reported several other signs of an improving market. In addition to the median sales price boost:

• The price-per-square-foot measurement of home value increased for the first time since June 2010. Apple Valley did see an increase in February this year, as well.
• 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. Apple Valley's supply of inventory was on par, dropping just more than 40 percent to 3.7 months.
• 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 said "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,” Fazendin said.

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 only 34.6 percent of all new listings in March, the smallest share since July 2008.

The number of homes for sale in the metro 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.