Minneapolis Area Association of Realtors weekly report shows continued decrease in Inventory of Homes for sale in Minneapolis / St Paul, MN.
In the Twin Cities region, for the week ending September 15:
• New Listings increased 4.0% to 1,360
• Pending Sales increased 18.4% to 978
• Inventory decreased 29.5% to 16,479
Read Full Report from MAAR
Last week there were 128 fewer homes for sale than the week prior, I tracked this back a few weeks – you can view it as notes on the chart below. I am trying to guess what the inventory may look like in a few weeks. It is possible we could see the inventory dip below 16,000 within a few weeks.
Inventory is of course only half of the equation of Supply & Demand, but if there is Little Supply it only takes a modest amount of Demand to increase prices.
With QE3 pumping $40 Billion per month into the market buying mortgage-backed securities, we are likely to see lower rates and increased demand for the short-term. In essence, the Fed is trying to re-inflate the housing bubble. If you are in a position to take advantage of these low rates, I would. My personal fear is what is going to happen down the road when the bills come due on the $40 Billion per month, whether the money is printed or borrowed – there may be some real pain involved later.