I have anxiously awaited this report, and I am pleased to see the results. We are about to break the 20,000 mark for inventory as our inventory is now at 20,030 listings! So Close! 20,000 is an arbitrary number I picked, it is a nice round number and we have not been below that mark since late 2004 and early 2005.
November’s Median Sales Price decreased 9.9% to $149,500, I am not overly concerned with that for a couple reasons:
A lot of the sales taking place are in the lower price brackets as investors are purchasing distressed properties which brings that number lower, once the distressed inventory dissipates the median price should level back to historical perspectives. (this has everyone guessing because of the “Shadow Inventory” which no one can seem to quantify..)
The other reason I am not overly concerned is that our inventory is way down, we are now at a 5.7 month supply of homes at our current rate of sales. That places us in a Balanced Market by most people’s definition. A Balanced Market will stabilize pricing. We are beginning to see that in the Days on Market, which decreased 1.8% to 135. Although if I were writing for a newspaper or TV news show, I would harp on the drop in median price figure to draw lots of attention to sell advertising…
In the Twin Cities region, for the week ending December 3:
• New Listings decreased 9.3% to 1,006
• Pending Sales increased 36.4% to 885
• Inventory decreased 22.9% to 20,031
For the month of November:
• Median Sales Price decreased 9.9% to $149,500
• Days on Market decreased 1.8% to 135
• Percent of Original List Price Received increased 1.0% to 90.9%
• Months Supply of Inventory decreased 30.5% to 5.7
Read Full Report from Minneapolis Area Association of Realtors
Here is the current Inventory, we are slightly above the 20,000 mark for inventory, by only 30 listings. With Pending Sales up, and new listing most likely not coming on the market for the rest of the year – I think it is safe to say we will likely start 2012 below 20,000 houses on the market.
The Housing Affordability Index is at record highs. For the Twin Cities, the median household income is 256% of what is necessary to qualify for the median-priced home – under prevailing interest rates… This is a good thing, this is part of the market correction.
- Twin Cities’ home prices continue downward trend (blogs.stthomas.edu)
- Twin Cities Weekly Real Estate Market Update for week ending Nov 19 2011 (craigkamman.com)