With pending sales up and new listings down over the course of the last twelve months it should come as no surprise that the supply of homes for sale is down. In fact, market-wide inventory levels are down 22.4% compared to last year, to the lowest October mark since 2004.
Sales have been showing a more normal curve this year as the effects of the federal tax credit wear off.
The chart below compiled by the Minneapolis Area Association of Realtors shows how that translates to months supply of inventory when considering number of homes available for sale related to number of homes actually selling.
The supply steadily rose until it peaked in 2008, then fell through 2010... built up again last year after the end of the federal homebuyer tax credit, and is now falling again. Metrowide we have 6.2 months supply of inventory, pretty close to a balanced market of 5-6 months.
If you have been looking to buy a home in the $120,000 and under price range you likely won't be surprised to learn that this price bracket had the largest gain in sales, increasing 50% when comparing rolling 12 month totals. But the price bracket that actually sold the most quickly was the $190,00-$250,000 range... perhaps partly because of the restriction on foreclosed homes excluding investor buyers in the first few weeks, who dominate the lowest price range because of all the work often required due to poor condition.
Median price has been holding steady, hanging low at least partly because distressed properties still command about 40% of the metro area market (45% nationwide).
The declining inventory means less competition for sellers, who are receiving closer to their asking price... up over last year to 91.2%.
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors. Click here for local reports on 200+ metro area communities. Click here for current interactive market analytics by area, city, county, neighborhood or zip code.
Sharlene Hensrud, RE/MAX Results - Email - Minneapolis - St. Paul Real Estate Market Information
