Inventory has played a significant role in the Twin Cities housing market this year, with months supply (number of homes available for sale relative to actual sales) at levels not seen since the winter of 2004. The average for all property types has been in the 3-month range since September 2012 (balanced is 5-6 months), but the months supply of townhomes is the lowest, at only 2.7 months in October.
Traditional sellers are back in the market, both moving up and downsizing. Baby Boomers are often looking for townhomes, and are both feeling and contributing to this shortage.
Overall, inventory levels continue to be low but at least total homes for sale isn't dropping as quickly as in past years… we'll have to see what the coming months bring.
New listings are following the traditional trend down. Traditional sellers tend to drop out over the winter months… increasing the share of foreclosures and short sales… and bringing prices down.
I still have buyers scouring new listings every day… ready to buy when the right property comes along. Listing at this time of the year can sometimes be a positive for sellers as there isn't as much competition. Whether selling or buying, the time to act is whenever YOU are ready.
Pending sales continue to follow seasonal trends, with total pending sales eerily close to last October.
Median sale price was the same in October as September at $195,000… but 11.4% above last year.
Overall, 2013 is shaping up to be one of the best years for the housing market since 2006.
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors, with the historical chart coming directly from them.
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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