October 2021 average percent of list price received was still over 100%, but it has been falling each month since June and median sales prices peaked this summer, then have been falling the last two months. However, when compared year over year prices showed an increase of 7.9% compared to October 2020… the lowest year-over-year increase in the last 12 months.
Buyer demand is still strong and what is holding sales down is low inventory.
New listings dropped 11.5% compared to last year, but pending sales dropped less at 10.2%… resulting in a drop in total inventory of 16.2% and months supply of inventory drop of 17.6%. The even bigger 22.9% drop in days on market before pending indicates the buyer frenzy hasn’t stopped.
My experience the last few weeks has been there aren’t as many active buyers out there but they are ready to buy and every transaction has still resulted in multiple offers, selling over list price.
Months supply of inventory has continued to drop in this seller’s market. Although overall supply dropped 17.6% to 1.4 months, it does vary by price range… but not by as much as you might think. All price ranges under $1,000,000 had less than a 2 month supply, and homes in the $1M+ price range had only a 3.5 month supply! Condos continue to have a bigger supply than houses and townhouses.
Many buyers turned to new construction to see if there were bigger opportunities there, but supply chain issues have made that option difficult as well. While there was a meager 1.2 month supply of previously owned homes for sale in October 2021 (down 20% compared to last year), new construction homes were only a little better, at 3.3 months (down 8.3%).
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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