There is a positive trend in the twin cities real estate market. We are finally burning off some excess inventory.
For the Week ending August 6, 2011 – we are down to 24,362 Active properties for sale compared to 29,899 1 year prior. That is an 18.9% drop in inventory year over year bringing us to a 7.6 month supply of homes. To stabilize the pricing, we should be at a 5 to 6 month supply which is considered to be a balanced market.
How we got to these promising figures is over the last 3 months we had a -18.7% change in new listings coming to the market and at the same time our Pending sales were up 40%. What is really promising about these figures is that this is during difficult economic times and without any government tax credits. We are looking at the “Real Market” now.
If we look at it by price range, we can see the demand is between $120,000 and $350,000. I would venture to guess these price ranges pricing will be the first to stabilize.