This weekly real estate market update from the Minneapolis Area Association of Realtors shows us the stats for March.
In the Twin Cities region, for the week ending March 31:
- New Listings decreased 12.1% to 1,532
- Pending Sales increased 25.2% to 1,113
- Inventory decreased 27.2% to 17,274
For the month of March:
- Median Sales Price increased 6.4% to $149,000
- Days on Market decreased 10.0% to 144
- Percent of Original List Price Received increased 3.7% to 92.1%
- Months Supply of Inventory decreased 39.2% to 4.6
For March 2012:
We have been monitoring the weekly stats and I mentioned we would begin to see Percentage of List Price Received by Sellers to increase which would then lead to prices stabilization. This report shows us this is beginning to happen, while we are still not out of the woods – this is a great sign.
Much of this is to be expected seasonally, however with the low inventory levels approaching Seller’s Market territory – there is real supply/demand economics taking place. 4.6 month supply of homes for sale, my guess is that we may dip into the 3 month supply range which puts us squarely in a Seller’s Market. The New Listings have not entered the market like I thought they would this spring.
What will the rest of the year look like? My guess is that April and May will produce similar figures, then it is anyone’s guess. I think we will see a slow down for the summer and fall as gas prices strain budgets and we head into the election cycle. The “shadow inventory” doesn’t appear like it will hit us, at least not this year…
Related articles
- Twin Cities Weekly Real Estate Market Update, April 02 2012 (craigkamman.com)
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Hey Craig, Does MAAR report on the amount of sales concessions used. Because I’m seeing an increase in prices also, but there also appears to be an increase in the amount of sales concessions. Just curious.
They track those figures but not in this report. I believe those figures are accessable by The Thing.
I will look at that when I get back. I am doing some market scouting in Fargo this week. No recession here! They are at emergency level need for more housing… It is incredible to see…