August 2016 real estate market update…inventory shows biggest drop since 2012

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.

2016-08-historical inventory

New listings were up 2.1% over last year while pending sales increased 7.9%. Days on market until sale stayed low at 55 days, 14.1% under last year.

2016-08-new listings-pending

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%.

2016-08-closed-inventory

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.

2016-08-mos supply-price

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.

Local real estate market reports on 350+ metro area communities

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis – St. Paul Real Estate Market

HomesMSP Team- SharleneJohnAngela Minneapolis-St. Paul Realtors

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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