In the midst of the peak shopping season, houses in the Twin Cities metro sold at a record pace in June.
Both closed and pending sales reached 10-year highs and, with buyers outpacing sellers in some parts of the metro, houses on average sold in an unprecedented 66 days, according to a monthly report from the Minneapolis Area Association of Realtors.
"Buyers are very motivated right now," said Betsy Lucas of Coldwell Banker Burnet, who was recently involved with three lightning-speed sales. "When something really fabulous comes on the market, people are ready."
In the 13-county metro area, there were 6,928 closings in June, a 22 percent increase over last year. New listings rose only 4.6 percent, leading the total inventory of listings at the end of the month to slip 9.4 percent.
After a disappointing 2014, the recovery of the Twin Cities real estate market is back on track this year and exceeding expectations in some cases.
Mortgage rates remain near historic lows and wage growth is emboldening buyers and their pocketbooks.
"Buyers have been extraordinarily active this spring and summer," said Mike Hoffman, Minneapolis Area Association of Realtors (MAAR) president. "Consumers, particularly first-time buyers, understand that the timing is right."
Facing the threat of higher home prices and rising mortgage rates, buyers are far more motivated than they were last year at this time.