The total number of homes for sale in the Twin Cities real estate market continues to hang below previous years, with August 2017 falling 16.7% below August 2016.
As dramatic as the shortage of overall inventory has been, what is perhaps even more dramatic is looking at how the percentage of foreclosure and short sales has fallen to almost nothing… foreclosures were only 2.1% of sales in August, short sales only half of one percent.
Overall new listings actually rose a meager 0.7% above last year in August… and held steady compared to last month. It is telling how closely the market is being held hostage by the shortage of inventory when you compare new listings to pending sales… both flat lined from July to August, totally in synch with each other.
Months supply of inventory and days on market both continue to drop compared to past years, although similar to last month.
Percent of list price was at 98.5%, and although median sale price was up 6.8% compared to last year it is still down a bit compared to the previous month as we experienced the end of summer calming effect on the market. Somehow getting ready for school, the state fair, last days at the cabin take precedence over buying and selling houses at this time of year.
All price ranges over $250,000 showed a decrease in months supply of homes for sale… perhaps a reflection of more move-up buyers taking advantage of market conditions. The decrease in the $1M+ price range may reflect the surge in urban luxury new home construction, such as the tear-down frenzy in Edina and the south Minneapolis lakes district.
Townhouses continue to be the housing type in shortest supply.
As the market cools down along with temperatures, updated turnkey listings will likely be in highest demand… but rehabbers are always looking for value-priced homes in need of updating.
The figures above are based on statistics for the combined 16-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.
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