Inventory levels continue to drop compared to past years, with July 2017 19.4% below July 2016. But as you can see from the chart above this isn’t the first year it has been dropping. As you can see in the chart below, it has been dropping every year since 2007 except for the little blip up in 2014. Nationwide, inventory levels are the lowest they have been in 30 years.
Stats haven’t changed much from June 2017, as we stagnate in summer mode. Everything is being affected by the shortage of homes for sale. Months supply of inventory is at 2.5 months, down significantly from past years but the same as last month. Average days on the market continues to fall, at only 44 days in June 2017.
Average percent of list price received is 99.2%, so don’t expect a deal on a good property that is priced right… you are more likely to pay more than list price. Median sale price at $254,000 continues to rise compared to past years, but down a little from last month as it follows the typical seasonal curve.
New listings and pending sales continue to follow similar paths, but new listings dropped more. That will likely reflect in lower pending sales next month. It is the number of available listings that is currently driving the market.
The lower price ranges continue to have the lowest supply when measured by months supply. 5-6 months is considered a balanced supply, which puts us in strong seller’s market for most price ranges. The exception is homes priced over $500,000, where months supply is down a bit compared to last month… likely fueled at least in part by move-up buyers. If you are thinking about selling and moving up, don’t worry that it is too late to sell this year… buyers are waiting for your home.
Townhomes continue to be the property type in shortest supply, as Baby Boomers sell their houses and seek to downsize only to find themselves in competition with first-time homebuyers.
The unemployment rate in the Twin Cities remains low at 4.3%, but wage growth hasn’t been keeping up. Nevertheless, as mortgage interest rates remain low and rents remain high we have a steady supply of buyers. Now we just need the homes to supply them.
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.
Click here for local reports on 350+ metro area communities