As home sales continue their slump the supply of home for sale continues to grow when measured by months supply of inventory. Sales plummeted after the end of the federal homebuyer tax credit in June, and have been creeping steadily downward since then.
New listings have been following the normal pattern of decline for this time of year, but are still ahead of sales…
…creating a dramatic increase in the months supply of inventory, which takes into account both the number of homes available for sale and rate at which they are being sold.
The supply of condos continues to float above houses and townhomes, which have been about the same for much of this year. The shift compared to last year at this time is most dramatic for houses, which last October had a 5.6 month supply… balanced between buyer and seller. This year it is tilted towards the buyer, with an 8.6 month supply.
When looking at differences by price range, the supply of homes in all price ranges below $250,000 has increased while the months supply of inventory for price ranges above $250,000 has decreased a bit. The most dramatic change was in the price range under $120,000, which last year had only a 2.8 month supply and is at 7.4 months in 2010. In the $1M+ category, although this year's 28.6 month supply sounds high, it is nevertheless significantly below last year's 36.7 month supply of homes for sale in that price category.
Median sale price continues to hold fairly steady, likely due at least in part to the shift to sales in higher price ranges… at $171,000 in October 2010 compared to $170,000 last year.
Sale price relative to original list price continues its recent fall since the end of the federal homebuyer tax credit, with October sale prices at 90.4% of original list price.
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.
Sharlene Hensrud, RE/MAX Results - Email – Minneapolis – St. Paul Real Estate Market Information
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