December 2016 real estate market update… inventory continues to shrink

In my December 2015 update I reported that the supply of inventory had bottomed out. Well, this year's supply is even lower. It bottomed out 26.3% below last year!

2016-12-historical inventory

Because of strong sales months supply of inventory was even lower… 30.4% below last year, with only a 1.6 months supply. That means that if inventory froze and sales continued at the same rate it would take only 1.6 months for all the inventory to be sold to eager buyers!

2016-12-historical months supply

New listings were 8.2% behind last December… pending sales 6.5% behind last year, likely because buyers can't find homes to buy.

Sellers, this means buyers want your home!

2016-12-new listings-pending
December 2016 closed sales were were 2.6% ahead of December 2015 closed sales, while inventory dropped 26.3% below last year. As you can see below, sales have been consistently higher than last year all year while inventory has been significantly lower.

2016-12-closed-inventory

No wonder the months supply of inventory is the lowest on record, only 1.6 months! It should also come as no surprise that median sale price has been floating above last year due to the laws of supply and demand.

2016-12-mos supply-price

Optimism is the overwhelming feeling for the real estate market in 2017. Unemployment is low, wages have improved, and even though mortgage rates have increased to the low 4% range that is still historically very low. The biggest challenge is high competition for few properties. Hopefully more sellers will join the market this year.

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

RELATED POSTS

Written By

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.

Related Posts

January 2017 market update… only 1-month supply of $120k-$250k homes

What struck me most in reviewing market stats for January 2017 was looking at historical charts of inventory and months supply of homes for sale. Both are the lowest they...

December 2015 Market Update… supply of homes for sale bottoms out!

2015 was a booming year for real estate, with housing demand reaching a 10-year high. Unfortunately, new listings aren't keeping up with demand and supply took a nose dive in...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!
Hidden

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.