May 2016 was another busy month for the Twin Cities real estate market. New listings were up 1.1% compared to last year…
…but that's not enough to replenish the supply of inventory being depleted by a healthy 9.9% increase in pending sales.
Inventory continues to hang below previous years, with this years supply 20.6% below last year.
The laws of supply and demand make this a hot market, with sellers getting an average 98.6% of list price and median sale price 5.7% ahead of last year, $236,826 for May 2016.
It's not surprising that Days on the Market before a sale has dropped dramatically, down 21.1% compared to last year at 60 days in May 2016. You can see from the historical chart below from the Minneapolis Area Association of Realtors that this is historically very low. Buyers and sellers both will tell you they are feeling it, with offers sometimes coming in within hours of listing.
Months supply of inventory is down 28.9%, at 2.7 months in May 2016 (the market is considered balanced at 5-6 months). The price range that has been most affected is prices under $150k, not surprising as prices rise and foreclosures decrease (93.3% were traditional sales in May 2016). The change in supply is most notable in the $350k-$500k price range, with many more choices for buyers in May. Only prices over $1M showed an increase in months supply.
Although the supply of homes for sale has been stretched thin, the housing market continues marching forward. Keep those new listings coming, please… that is what is needed to keep the market healthy.
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.
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Sharlene Hensrud, RE/MAX Results – Email – Minneapolis – St. Paul Real Estate Market
HomesMSP Team- Sharlene, John, Angela – Minneapolis-St. Paul Realtors
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