The number of new listings entering the market last year was the lowest it has been since the turn of the century... down from a peak of 108,033 in 2006 to only 68,875 in 2011.
That low number of sellers entering the marketplace coupled with buyers snatching them up resulted in a supply of homes for sale that dropped off my chart... only 16,191 active listings at the end of 2011.
If you look at the laws of supply and demand, indications are this could be a good year for sellers. The months supply of inventory in December was down to 4.2 months... indicating a seller's market for the first time since 2005!
Unemployment has been holding buyers back, but the unemployment rate has now reached its lowest level in three years. The decline since August was the biggest decline over any 4-month period dating back to 1976! That, combined with continued record-low mortgage rates and rising rental rates, has bolstered demand.
Traditional sellers have been holding back during the last few turbulent years, resulting in a high percentage of short sales and foreclosures...
...which in turn have contributed to declining prices encouraging traditional sellers to stay out of the market.
Overall median sale price last year was $150,000, but when you break it out by traditional, short sales and foreclosures you see that median price for traditional sales was almost double that for foreclosures.
This could be the year of the move up buyer... selling to first-time homebuyers eager to buy to escape rising rents... then buying up with not only price savings but also with the increased buying power of low interest rates.
Thinking about selling? It's time to start getting your home ready, listings are needed... !!!
Sharlene Hensrud, RE/MAX Results - Minneapolis - St. Paul Seller's Agent
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