House prices in the Twin Cities metro are rising at the same rate as the rest of the country. As of December, prices were flat compared with the previous month, but were 4.7 percent higher than the previous year. That's according to the latest data from the S & P/Case-Shiller house price index, which tracks repeat sales of the same single-family houses to determine changes in house prices. Prices in Denver and San Francisco both posted gains that exceeded 10 percent, while Chicago and Cleveland both posted gains of less than 2.5 percent.
Also on Tuesday, a new report from the Shenehon Center for Real Estate at the University of St. Thomas showed that the supply of house listings in the 13-county Twin Cities region hit a record low in January, and that the scarcity of those listings could lead to higher home prices and eroding affordability. The number of homes for sale in January fell to a new low of 10,131 - 4 percent fewer than last month and 21.7 percent less than a year ago.
"In many respects, January 2016 has been a good start to the new year," said Herb Tousley, director of real estate programs at the university. "If current levels continue, the low inventory of homes for sale will lead to more of an imbalance in the market...as we move into the spring and summer markets more people will be looking for homes to buy. If there are not significantly more homes available for sale it will begin to be a drag on the number of closed sales and prices will begin to increase at a faster rate making it harder for buyers to afford a home."
