The Minneapolis Area Associations Weekly Market update report is out showing continued improvement. Increased Pending Sales and fewer New Listings have brought our local market back in balance…
For week ending Feb 11, 2012:
• New Listings decreased 0.4% to 1,313
• Pending Sales increased 28.9% to 928
• Inventory decreased 23.5% to 17,690
Read Full Report from Minneapolis Area Association of Realtors
The Pending Sales are holding a wide spread of improvement over a year ago, this is promising – not a recovery yet, but positive improvement!
This is too early to call but it raised my eyebrow a bit. The New Listing Inventory had been holding below year over year averages, but this week the spread was down to almost even with year over year. A couple questions I am asking myself; are we going to see a sharp increase in new listings? Is this an early sign of the “pent up supply” of homes that held off selling because of market conditions?
We can certainly handle more inventory as long as the Pending Sales continue to improve… There is a point of too much inventory, we aren’t there yet – we are closer to a Seller’s Market than a Buyer’s Market in terms of months supply of homes. This is a metric we will need to keep an eye on in the coming weeks…
- Twin Cities Real Estate Market Update, 4.6 Month Supply of Homes. (craigkamman.com)