There has been much talk about the shortage of inventory in our current market. While that is true and this month saw an overall drop of 34.6% in the supply of homes for sale compared to last year, that hides a continuing increase in the supply of condos for sale… this month UP 47.8% compared to last year while the supply of houses is DOWN 44.8%. You can see the dramatic shift in the graphs and numbers above and below. The months supply of condo inventory is more than double that of houses.
This could be good news for homeowners planning to downsize from a house to a condo.
New listings were up 1.3% compared to last year, but that doesn’t begin to make up for the increase of 19.7% in pending sales… resulting in a drop of 32.4% in total inventory.
Closed sales were up 0.6% over last year at this time, days on market were down 4.9% and sellers were rewarded with an average of 100.3% of list price, up 1.3% over last year.
All this marketplace activity is fueled by low interest rates and homeowners anxious for more space as many people are working from home and remembering how difficult it was to work, school, exercise and live all in the same place. Many are looking to move for more space inside and out.
The competition for a low supply of inventory continues to push prices up, this August up 9.8% compared to last year.
Months supply of inventory fell for all price ranges, with the biggest drop in the $250-$350k price range. It is a strong sellers market in all price ranges under $1,000,000.
The data in this post comes from statistics 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 – shensrud@homesmsp.com
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