Nothing beats a great headline to get the shock attention of the reader… You may have seen these throughout the local papers. The October Housing Report is out for the Twin Cities Housing Market. You may have read variation of headlines that real estate price continued to fall, this should not be shocking if you have been following the Weekly Market Updates here. This report is just an overview of those weekly reports for October 2011.
We have gained a little ground back on price declines, but not enough to show price stability for the year. The inventory is getting back into 2004 territory. See Median Sales Price graph below. We took a nose dive in median sales price earlier in the year, since then have made some gains. I’m not saying this is good news, but there are signs of improvement.
New Listings in the Twin Cities region decreased 16.3 percent to 4,921. Pending
Sales were up 34.6 percent to 3,492. Inventory levels shrank 22.5 percent to
21,145 units, a trend that could indicate a changing landscape.
Prices gave back some ground. The Median Sales Price decreased 9.4 percent to
$155,000. Days on Market decreased 0.3 percent to 135 days. Absorption rates
improved as Months Supply of Inventory was down 28.6 percent to 6.2 months.
MAAR – Read Full Report
What I think is interesting is in the number of new listings chart below. Look back to 2004 and 2005, this was the peak of the housing market before the crash. See how we were beginning to flood the market with new listings preceding the crash? Now compare that to 2011, look how few of new listings we are adding to the mix? It is possible we may run into a housing shortage. I have said this before, and most will call be crazy. I just see a perfect storm brewing if suddenly the economy takes off. Don’t get me wrong, this would be a welcomed problem!
(I need a rubber stamp that says something like “unless the Shadow Inventory wave hits us”…)
- Twin Cities Weekly Real Estate Market Report, week ending Oct 29 2011 (craigkamman.com)
- Foreclosure down 35.6% in the Twin Cities for 3Q 2011 (craigkamman.com)
- Twin Cities Housing Market set for rebound (craigkamman.com)