The Minneapolis Area Association of Realtor’s Weekly Market Update is out for week ending Jan 7, 2012. The trend continues… New Listings are decreasing and pending sales are increasing year over year, giving us low inventory levels.
- New Listings decreased 14.6% to 1,266
- Pending Sales increased 13.8% to 561
- Inventory decreased 24.5% to 17,302
The New Listings are starting to come to the market as the Spring Market begins it’s ramp up. The inventory is growing a slower pace than this time last year, 14.6% less. Check out the trend line from 2006, there is a definite trend of few new listings. The buyers are coming out and from all signs of activity, looks like we are going to have an early and a good Spring Market.
With this trend of fewer New Listings, and the newer trend of increased Pending Sales – we are seeing outstanding inventory levels. 17,302 Active Listings. As if this number wasn’t great all by itself, we should take note that there are approx 4,000 of those “Active Listings” that are actually Pending. The short sales that offers that have been accepted by the owner (under contract), but yet waiting for final bank approval are not marked Pending. So this means if you are a Buyer, you are really in a market that has approx 13,302 Active Listings.
To add to the buyers problem of choice is that a lot of these homes are in tough shape, the inventory that is there is in need of work. We are seeing more and more Multiple Offer situations as a result. This will stabilize pricing, I am not going to go as far to say that we are going to see big price increases just yet – at least not until this reality is becomes apparent to the buyers and sellers out there. Generally speaking the perception is still that the housing market is bad – and to certain degree it is, however we are now seeing this dynamic change.
Assuming the economy doesn’t go into a double dip from the collapse of Europe, and we don’t get pounded by a wave of new inventory from the “shadow inventory” - we appear to be on the mend and it has the potential to turn into a Seller’s Market..
I remain CAUTIOUSLY Optimistic. I believe we are going to have a great Spring Market, so if you want to sell – NOW is the time. I have concerns over the fallout from Europe and the Shadow Inventory that could change the entire landscape quickly.
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Related articles
- Twin Cities Real Estate Market Update, 4.6 Month Supply of Homes. (craigkamman.com)
- Twin Cities Real Estate Market Report – Week Ending September 17, 2011 (johnmurphyreports.com)
- November 2011 Monthly Skinny Twin Cities Real Estate Market (craigkamman.com)
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Hey Craig, Everything that I’m seeing is showing a shortage of homes for sale. If this keeps up it’ll be a very strong spring selling season. I think those that are ready to sell early, and not wait until everyone else decides to sell will do better. Let’s keep our fingers crossed and hope that a flood of REOs don’t hit the market all at once.
I agree. I want to jump out there and say “we’ve turned the corner!” But this shadow inventory and Europe could turn this whole market upside down overnight!