Market Update - December Stats | HomesMSP

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After two months of sales way above the previous year because of the expected end of the first time homebuyer tax credit, sales dropped back to more normal December levels…8.9% above 2008, compared to 67% above in November! Closed sales for all of 2009 were 16.7% ahead of 2008.
With the tax credit extended for purchase agreements through April for first time homebuyers and expanded to include some repeat buyers, sales for 2010 are likely to be front-loaded for the first six months.

New listings continue to hang below previous years. That, combined with high sales, resulted in inventory levels at the lowest point since April 2005, with fewer than 20,000 listings. It looks pretty dramatic watching the supply drop to such low levels…putting sellers in a much better position than they have been for the last few years.

All price ranges continue to improve in sales and months supply of inventory, but there is still a strong divide by price range. It makes sense when you learn that 49% of sales in 2009 were to first-time homebuyers. The overall supply is at a balanced 5.0 months for the first time since March 2006, shortly before the start of a 24-month slide in home sales and prices.

December 2009 median sale price hugged just slightly below December 2008. Average sale price for the whole year was 14.5% below 2008.

Condos were hit the hardest with declining prices in 2009, 17.1% lower than in 2008. The months supply of inventory is highest in that housing type as well, but all three types continue to improve.

You can see more clearly in the chart below how the supply of houses and townhomes are getting back to 2006 levels…both in months supply and in relation to each other. Condos aren't there yet, but they are also improving.

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 links to local reports for 125 metro area communities.