New listings are up on 1.3% over last year but pending sales are actually down 3%. That said, you can see in the charts below how closely they are tied together. If we had more new listings, I would expect pending sales would also be higher. But don’t expect potential buyers to jump at every new listing… they are very discerning in their choices.
Total inventory, however, continues to fall behind previous years, this year 19.9% below last year. Ten years ago, in March 2007, there were a total of 29,285 homes for sale… a 6.8 month supply. This year there are only 10,213 homes for sale… a 2.0 month supply. That is about a 65% drop in the supply of homes for sale over the last 10 years!
Although the months supply of homes for sale is up from the 1.8 months it was December-February, it isn’t by much. It would take only 2 months for all the homes to be sold if no new listings came on the market. It should come as no surprise that days on the market are also down, 14.1% below last year at 73 days. If you talk to buyers, they will likely tell you it feels more like 73 hours rather than days for the good listings!
Don’t expect to get a deal on price… often, the deal is securing the winning bid! Median sales price went up 7.0% to $237,500 and average sale price was 98.1% of list price. That means average sale price for a home listed at $225,000 was $220,725.
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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