The real estate market in southeast Minnesota continued to strengthen throughout 2015, resulting in a residential housing market poised for significant growth, according to a press release. The results were announced by the Southeast Minnesota Association of Realtors, an association representing more than 1,000 realtors throughout the 11 counties in southeast Minnesota.

“The number of homes on the market is extremely low in some areas while home prices continue to gain traction,” said Tami Gunn, president of SEMAR. “In fact, the activity we are seeing today is more like what we normally see in March or April.”

Among the indicators that help shape the real estate market in southeast Minnesota:

• Homes sold: More than 6,000 homes were sold in 2015, up from 5,000 in 2013 and 2014, a 16.2 percent increase. As the economy showed improvement again in 2015 with improved employment, supply and demand were healthy. Improved inventory and affordability remain key factors for continued consumer optimism.

• Months Supply of Inventory: Levels dropped 37.8 percent this year to 2.8 months supply.  Months of inventory has been dropping consistently over the last five years. Sellers are facing less competition, and multiple offer situations are commonplace. Unfortunately, some buyers continue struggling to find quality inventory.

• Twelve-month average days on the market: Down nearly 11 percent to 85 days, on average, shows that homes, when priced appropriately, are selling quickly.

• Median sales price: The point at which half of the sales sold for less and half for more (not accounting for seller concessions) in a given month was $155,000 in 2015, an increase of 7.6 percent over 2014.

• Affordability index: The index this year is 247 (down 11.5 percent from 2014), which means the median household income is 247 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. The higher number is an indicator of greater affordability in an area.

“We are in a unique window; there aren’t many houses on the market, so if you are considering selling your home, this is a great time to do it,” Gunn said. “Priced correctly, homes are selling quickly with multiple offers in many cases. However, with FHA reducing mortgage insurance premiums, low down payment options and low interest rates, buyers are also in a strong position.”