Twin Cities doesn’t have a housing inventory problem, we have a jobs problem.


The Minneapolis Area Association of Realtors published their Weekly Market Update.  I pulled a couple of charts from here to show that we don’t have a housing inventory problem, we have a Jobs problem.

As you can see, from an “inventory” perspective, we are at about 2005 levels.  

Twin Cities 8/13/2011 Inventory

Twin Cities 8/13/2011 Absorption Rate

 However, our Month Supply of homes is closer to 2006 levels.  The pace of sales is much slower, primarily due to consumer confidence (employment/jobs).  We have record low mortgage interest rates, housing affordability hasn’t been better – yet the buyers are not out in force… 

Advertisements

8 Comments

Filed under Uncategorized

8 responses to “Twin Cities doesn’t have a housing inventory problem, we have a jobs problem.

  1. Pingback: “New Construction sales shaping up to be worst in 50 years.” « craigkamman

  2. Pingback: Minneapolis St Paul Building Permits and Housing Starts « craigkamman

  3. Pingback: Twin Cities Weekly Market Update (week ending Aug 20, 2011) | craigkamman

  4. Pingback: Twin Cities Housing Market, Weekly Update | craigkamman

  5. Pingback: Minneapolis/St.Paul MN, Twin Cities Unemployment Rate August 2011 – released 9/28/2011 | craigkamman

  6. Pingback: Twin Cities Metro Area Household Types, Homeowneship Rate, and Household Size | craigkamman

  7. Pingback: Twin Cities Metro Area’s Pent Up Demand, Census Demographics projecting future housing demand. | craigkamman

  8. Pingback: Weekly Twin Cities Real Estate Market Update. Week Ending Oct 1, 2011 | craigkamman

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s