Pending and closed monthly sales having been falling behind last year’s sales all year, but they both had their biggest drop compared to last year in October. With pending sales dropping the most, expect closed sales to drop even more in the coming months.
A bigger drop in sales than new listings has resulted in an increase in the total number of homes for sale and months supply of inventory. We now have an overall months supply of inventory of 1.9 months, but what is even more amazing is when you break it out by price range, even the supply of homes priced over $1,000,000 only has a 4.3 month supply. The market is balanced at a 5-6 month supply, so it will take us a long time to build the supply of homes for sale to a point where we are no longer in a seller’s market.
When the pandemic hit the supply of condos shot up, as people wanted more space, and the supply of houses, townhouses and condos is coming more into balance again.
Days on market before pending are increasing but percent of list price received is back to about what it was in 2019, at 98.2%… about the same as before the craziness of the last two years. In spite of that, median sale price continues to increase because of the inventory shortage.
Even multiple offers continue, although at levels well below the early part of the year.
Sale prices for the year are following a more normal curve this year as the market settles down.
Inventory supply is up in both previously owned homes and new construction. This can be a good time to buy, as there is less competition and prices are softening.
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.
Click here for local reports on 350+ metro area communities
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
RELATED POSTS