Welcome to today’s real estate news roundup! In the Twin Cities, home sales have eased after a strong spring, but there are more listings available for buyers. Despite a decline in sales, sellers still have an advantage in the market, with slightly higher prices and a 2.4-month supply of houses. Meanwhile, in Brainerd, there’s a growing interest in creating a tiny homes community to address homelessness and provide affordable housing. Zoning regulations have posed challenges, but the idea is gaining traction. Additionally, Minnesota Realtors® report that statewide buyer and seller activity is down compared to last year, but prices continue to rise. Market activity varies across regions, with some areas experiencing record-high prices. Lastly, Minneapolis city leaders have introduced a new ordinance to reduce vacant and hazardous buildings, aiming to promote more active properties and improve safety. To learn more about these stories, click on the respective links above.
More listings – and slightly higher prices – for Twin Cities home buyers.
According to a midyear sales report, home sales in the Twin Cities have eased after a strong spring. Pending sales in the 16-county metro area were 10.8% lower than last year, but still up 1.8% for the year. New property listings were also down 5.8% from last year, but up 10.6% for the year, resulting in more available houses.
Despite the decline in sales, sellers still have an advantage in the market with a 2.4-month supply of houses. However, there are still supply constraints in certain areas. Price gains have been slow and steady, with a 1.8% increase in June compared to last year. Sellers are still getting 100% of their asking price, unlike last fall and spring when discounts were common.
Similar trends are seen statewide, with new listings up almost 9% and listing inventory increasing for 11 consecutive months. Statewide, properties are selling in 33 days on average, and the median sale price by the end of June was $355,000, a 1.4% increase over last year.
Mortgage rates have been a challenge for buyers, hovering around 7%. However, rates have recently slipped slightly. Despite these challenges, there is still pent-up demand in many parts of the state.
To learn more about the Twin Cities housing market and interest rates, click here.
Could tiny homes community help answer homelessness? – Brainerd Dispatch | News, weather, sports from Brainerd and Baxter
A community of tiny homes in Brainerd could provide affordable housing for those on the brink of homelessness and help address the issue. Crow Wing County Commissioner Paul Koering suggested the idea of a tiny home community, where each person would have their own small house like a studio apartment. Rents could be around $500, making it more affordable for individuals to own their own starter home.
While there are developers and agencies interested in creating such a community, zoning regulations have been a challenge. The proposal for a previous tiny home community in Brainerd was denied by the city council due to concerns about the project’s fit with the comprehensive plan and the impact on public utilities.
Despite the challenges, the idea of tiny homes as a solution to homelessness is gaining traction. Other communities have successfully implemented similar projects, providing residents with privacy, security, and access to resources. In Crow Wing County, efforts are being made to address homelessness through partnerships with local service providers and the development of long-term housing options.
To learn more about the potential of tiny homes in addressing homelessness, click here.
Prices reach record highs | News | pinecountynews.com
According to new data from Minnesota Realtors®, both buyer and seller activity in the housing market were down compared to June of 2023. However, prices and market times continued to rise. Year-to-date activity shows an increase in new listings by 8.8% and closed sales by 3.4% statewide compared to last year. This indicates a higher rate of seller activity than buyer activity, resulting in more supply entering the market relative to demand.
Despite low affordability factors and shrinking demand, prices are unlikely to soften due to the persistent inventory shortage. The median sales price increased by 1.4% and market times rose by 10%. While there are signs of decreasing interest rates and more supply becoming available, affordability remains a key challenge for buyers.
Market activity varies across regions, with Alexandria and Grand Rapids being the only areas with more new listings than last year. Home prices rose the most in the Willmar, St. Cloud, and Rochester regions, while the largest price declines were seen in the Detroit Lakes and Alexandria areas. In the Twin Cities metro area, home prices are higher, but homes are selling more quickly in greater Minnesota.
To learn more about the current housing market trends and record-high prices, click here.
Minneapolis city, community leaders say new ordinance aims to decrease number of vacant, hazardous buildings – CBS Minnesota
City and community leaders in Minneapolis have introduced a new ordinance aimed at reducing the number of vacant and hazardous buildings in the city. The ordinance places a two-year time limit on the eligibility for a building to be on the vacant building registry (VBR), addressing the issue of properties remaining vacant for years.
At a news conference, City Council members and community leaders highlighted the hazards posed by inactive buildings and the need to encourage property owners to make their buildings active. The ordinance includes increased fees for vacant buildings and aims to create a pathway for these buildings to become active again.
The new ordinance is seen as a response to longstanding concerns raised by residents about vacant and hazardous properties. By implementing a time limit on VBR eligibility, the city hopes to promote more housing and commercial space while reducing the number of hazardous properties in Minneapolis.
To learn more about the new ordinance and its impact on vacant and hazardous buildings in Minneapolis, click here.