New listings increased a bit in July, while pending sales dropped for the second month in a row and closed sales dropped compared to last year for the first time this year.
List price was up 11.9% compared to July 2020, but held steady with last month at $350,000. Percent of list price received finally moderated at bit after climbing every month the first half of the year… at 103.6% in July.
What may be most telling of the intense competition for available homes is the days on market before pending. Both June and July dropped over 50% compared to last year, with only 19 days on the market before pending in July… the lowest in recorded history.
A big contributing factor is likely the high number of buyers who no longer make their purchase subject to inspection due to the intense competition. This means properties can go from Active to Pending immediately after accepting an offer, without waiting for an inspection period.
The total number of homes for sale and months supply of inventory continue to drop, although it is slowing down. In June inventory dropped 35.5% compared to last year… in July it dropped only 25.3%. Months supply of inventory dropped 47.6% in June but only 35% in July.
New construction sales slowed to a lower level than previously existing sales in July, perhaps giving builders a chance to catch up before accepting new contracts.
Although the market is showing signs of starting to slow down, we are still in a strong seller’s market. Every price range under $1,000,000 has only a 2-month supply or less, and price ranges $1M+ only have a 3.9 month supply. Condos have the biggest supply compared to single family homes and townhouses.
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 – shensrud@homesmsp.com
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