There is some concern that the housing inventory is beginning to climb in some markets and that this may spread into other markets.
Bill McBride from Calculated Risk posted on this year over year increase.
We are starting to see more and more local areas report year-over-year increases in inventory. Housing economist Tom Lawler frequently sends out data on different areas across the country. In today’s note, Lawler wrote:
Read more at Calculated Risk
His post made me curious on what may be in store for our marketplace. The Twin Cities housing market is still showing year over year decline in inventory.
New Listings are beginning to show something interesting. +16.4% year over year increase in New Listings. Currently the market can handle the added inventory, and arguably needs this inventory badly. At this point I am not overly concerned, but there are a lot of dynamics at play and we have seen how quickly these markets can turn.
Here are the year over year Pending Sales. The Twin Cities is showing a +10.6% year over year increase in Pending Sales. As long as this figure continues to improve, the market can handle a lot more inventory. One thing is certain, the housing market is always in flux…