The Twin Cities real estate market wrapped up 2011 quite nicely despite some rough spots along the way, ending 2011 with a 4.6 month Supply of Homes! It was not the year of the recovery as some had predicted, but we are certainly in an improved state.
For week ending December 31, 2011
• New Listings decreased 11.6% to 593
• Pending Sales increased 41.7% to 564
• Inventory decreased 24.9% to 18,341
For the month of December:
• Median Sales Price decreased 5.6% to $145,000
• Days on Market decreased 2.4% to 140
• Percent of Original List Price Received increased 1.8% to 90.6%
• Months Supply of Inventory decreased 36.2% to 4.6
Read Full Report from the Minneapolis Area Association of Realtors
YES. 4.6 Month Supply of Homes.
I quote myself from last weeks report:
I suspect we may be close to dropping below a 5 month supply of homes, next weeks report will tell us more…
This puts the Twin Cities WELL WITHIN A BALANCED MARKET and approaching a Buyers market believe it or not. I say that with caution, we still have strong headwinds against the housing market including; Economy, Jobs, Shadow Inventory, and Regulations.
So Builders – don’t start building TOO many spec homes.. However – you should probably start pushing dirt and get your basements in for the spring market. (check the local community market stats or contact me for a detailed market study). Be cautious, the inventory will seasonally increase, so this window may not last long…
If you are sitting on the fence waiting for homes to become Affordable, I think you might miss out – check the current Housing Affordability Index.
- Twin Cities Real Estate Market Weekly Update for week ending 12/24/2011 (craigkamman.com)
- Twin Cities housing market: Tough but stable (startribune.com)