Twin Cities Weekly Market Update (week ending Aug 20, 2011)


This market update was put on the back-burner on getting posted because the Quarterly Case Shiller Index came out this morning.  This one should not be overlooked, because this is actually a leading indicator to the Case Shiller Index for our area. 

Minneapolis Area Association of Realtor released their Market Update.  We are experiencing positive signs in the market, we have inventory shrinking and pending sales picking up.  Ultimately these 2 factors will converge into stabilizing then increasing prices. (simple supply and demand) Pending Sales were up 53.3%, that is outstanding!  Inventory shrunk by 20%, another astonishing figure.   Now we have  a trend going, the average of the last 3 months have been a 15% decrease in inventory and 44.2% increase in pending sales.  We are now down to 2005/2006 inventory levels!    Prices should begin stabilizing at this inventory level and sales activity, assuming these levels continue. 

Week Ending 8/20/2011 Inventory of Homes (Twin Cities)

Week Ending 8/20/2011 Pending Sales Twin Cities

Now the really cool thing is that the Affordability Index is really high.  The Median household  income is 234% of what is required to qualify for the median-priced home under current interest rates.  Right now it is cheaper to own a home than it is to rent.  This should  attract more buyers back into the home market, fueling added demand – stabilizing prices.  (* my traditional disclaimer, assuming we add employment to the region…)
Housing Affordability Index 8/20/2011 Twin Cities
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3 Comments

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3 responses to “Twin Cities Weekly Market Update (week ending Aug 20, 2011)

  1. Pingback: Twin Cities Real Estate Market Report – Week Ending August 20, 2011 « John Murphy Reports

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

  3. Pingback: Twin Cities MLS Weekly Market Update, week ending Sept 24, 2011 | craigkamman

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