As our real estate market begins its seasonal decline inventory remains the key factor… continuing to drive prices up and market time down. The supply of homes for sale in August 2016 was 18.8% below August 2015… the biggest year over year decline since April 2012.
With closed sales up 7.4% compared to last year it should come as no surprise that the total supply of homes for sale is down a significant 18.8%.
Months supply of homes for sale continues to hang low, down 24.3% to 2.8 months… still a strong seller's market. Price is a reflection of all the market factors, starting to seasonally moderate. Median price in August 2016 was $237,500, up 5.7% compared to August 2015.
Unfortunately, many sellers are still afraid their homes will sell quickly and they will not find a suitable new home. Buyers are keeping demand strong, motivated by rising rents and attractive interest rates threatening to also rise by the end of the year. With the second lowest unemployment rate of any major US metropolitan area, job and wage growth give buyers confidence to keep searching.
The figures and charts above are 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.