MINNEAPOLIS (WCCO) — Homes are selling so fast in parts of the metro that there aren’t enough to meet the demands of buyers.
That’s one of the findings of a new study from the University of St. Thomas. It shows double digit gains in home prices and the number of homes sold over last year.READ MORE: Juneteenth Rises To Surface Of American History In Aftermath Of George Floyd's Murder
In Maple Grove, Tricia Leafblad’s family never intended to stay in their home as long as they have.
“Originally, we thought we’d wind up staying two to three years, and then ended up staying almost nine now,” she says.
A growing family, however, demands more space. After the housing crash, the Leafblads worried about selling.
“Timing of when to put it on the market and when to close was an issue. And then yeah, how much we would be able to sell it for?” Leafblad said.
Luckily, the Leafblads struck a deal to sell their home in a weekend.READ MORE: 'Bumpy Ride': Minnesota Legislature Continues Special Session Work, As Deadline Before Shutdown Looms
“Well, we had a couple showings, and then a second showing and by Friday early morning we got a text from our realtor saying he had news and that it was good,” said Leafblad.
A University of St. Thomas real estate analysis of the Twin Cities found that home sales, by volume, were up 11 percent this January over last. The average price of a home is nearly 4 percent higher than January of 2012.
Herb Tousley is the director of real estate studies at the University of St. Thomas.
“There’s multiple offers. They are bidding at above the asking price and things are turning around and selling right away,” said Tousley.
Tousley added that much of what we’re seeing can be linked to a historically low number of houses on the market.
“There is a fair number of people out there that have negative equity. They owe a little bit more that there house is worth and they really can’t sell right now,” said Tousley.MORE NEWS: Minnesota Unemployment Rate Drops To 4% As Businesses Scramble To Hire
The University of St. Thomas study also showed that the shortage of homes for sale is boosting the number of new homes being built in the area.