This market update was put on the back-burner on getting posted because the Quarterly Case Shiller Index came out this morning. This one should not be overlooked, because this is actually a leading indicator to the Case Shiller Index for our area.
Minneapolis Area Association of Realtor released their Market Update. We are experiencing positive signs in the market, we have inventory shrinking and pending sales picking up. Ultimately these 2 factors will converge into stabilizing then increasing prices. (simple supply and demand) Pending Sales were up 53.3%, that is outstanding! Inventory shrunk by 20%, another astonishing figure. Now we have a trend going, the average of the last 3 months have been a 15% decrease in inventory and 44.2% increase in pending sales. We are now down to 2005/2006 inventory levels! Prices should begin stabilizing at this inventory level and sales activity, assuming these levels continue.
- S&P Case Shiller Home Price Index 2nd Qtr 2011, Minneapolis vs Composite 20 (craigkamman.wordpress.com)
- Twin Cities Weekly Market Update (week of August 15th 2011) (craigkamman.wordpress.com)
- Twin Cities doesn’t have a housing inventory problem, we have a jobs problem. (craigkamman.wordpress.com)