Inventory continues to decline in Minneapolis/St Paul area, Minneapolis Area Association of Realtors reports this week.
I am primarily focused on inventory, instead of pending sales or new listings. Inventory is of course the combined result of both pending sales and new listings… This week the Inventory is down to 16,785 homes for sale in the Twin Cities metro area. These are inventory levels not seen since 2004. Next weeks report from MAAR should show us the absorption rate (months supply) – this is key metric in new construction. If it takes 3-4 months to build a new home to “add” to supply, then when the absorption rate hits under 3-4 months – you can add new homes to the supply.
In the Twin Cities region, for the week ending August 25:
• New Listings increased 1.3% to 1,282
• Pending Sales increased 19.4% to 1,027
• Inventory decreased 29.9% to 16,785
Read Full Report from MAAR