With pending sales up 34.2% and new listings up only 1.1%, the number of homes for sale in the 13-county Twin Cities metropolitan area fell to 16,689 units in February... not only way below the last few years, but the lowest inventory level for any month since 2003 according to the Minneapolis Area Association of Realtors.
The result is an official seller's market again for the third month in a row, with a 4.6 month supply of homes for sale. More purchase agreements were signed in February 2012 than in every February since 2005.
Median sales price dropped again last month to $138,500, but it was the lowest price decline since October 2010. While traditional sales increased by a dramatic 36.2%, traditional and foreclosure sales nevertheless held about equal market shares, at 42.7% and 42.3%, and foreclosures continue to drag down prices.
When you look at it solely from the perspective of actual price the dramatic falling priceline is pretty discouraging. However, when you look at it from the perspective of year-over-year change in median sales price you can see the price trend is improving.
This shape reminds me of the 'W' shaped recession economists were warning about in 2009. The good news is the second price dip wasn't as deep as the first one when compared year-over-year.
The overall median price decline last month was the smallest decline in 16 months. Percent of asking price increased for the 7th straight month, to an average of 90.6% in February. Market time decreased for the 5th straight month when comparing year-over-year, to an average of 144 days on the market before accepting a purchase agreement.
Pending sales have been ahead of the last three years so far this year... I am anxious to see what March brings!
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
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Sharlene Hensrud, RE/MAX Results - Email - Minneapolis - St. Paul Real Estate Market Information
