A release issued by the Minneapolis Area Association of REALTORS (MAAR) gave an in-depth look at how the nationwide cold weather this past January and February affected local, cold weather markets.
Freezing weather hurt new listings, which declined 5.0 percent. Despite the drop in listings, MAAR is more bullish for the spring and summer months, expecting overall seller activity to increase.
The release notes that new listings in the higher-priced segments of inventory has risen 9.1 percent, continuing a 22-month trend. Foreclosure and short sale new listings also reflected a national decline, falling 34.5 and 54.6 percent, respectively.
The cold weather in the area negatively affected closed sales: "On the demand side, closed sales were down 14.0 percent to 2,465 properties overall, which speaks to the low number of weather-impeded purchase agreements entered into during January," the release said.
The group cites that lower inventory, down 9.6 percent from February, also impeded sales.
“It was an interesting month,” said Emily Green, President of MAAR. “While the market shifts back toward where it was before the bubble, we expect to see foreclosures and short sales become less prevalent, which can dilute overall numbers."
"Then you have the weather," Green added.
Interest rates remain affordable with a favorable supply of inventory at 2.8 months, giving hope for a rebound from a frosty few months.
“The fundamentals haven’t changed.” said Mike Hoffman, MAAR President-Elect. “Our local economy is diverse and growing and so is our population. It’s important not to read too much into minor fluctuations like this.”