Another market update with great news from Minneapolis Area Association of Realtors. I am really loving this trend! We continue to see Pending Sales increase year over year and new listings down year over year leaving us with low inventory.
Change in New Listings: -22.5% Change in Pending Sales: +40.6% Change in Inventory: -22.2%
We are still seeing the median price declining, but his may not be as bad as it sounds. This could be the cheaper homes selling skewing the numbers as we finish clearing the foreclosure inventory. The % of asking price received showed slight movement upwards to 91.2% of list price received, which is sign of moving in the right direction to stabilize pricing.
As this inventory continues to drop we will begin to see a shortage of “good” housing, so if you have been wanting to sell – you should probably think about putting your home up for sale. (but give me a call first!). I would recommend hitting the market this fall as the competition drops off the market.
Naturally, as pending sales increase and inventory decreases – the Absorption Rate decreases. This figure should be between 4 months and 6 months to be in a balanced market range, under 4 months is a Seller’s Market. We are not all that far skewed to a buyer’s market now from an inventory perspective. As Seller’s start realizing this the prices will begin to hold tighter giving us some price stability.
Assuming we don’t get hit with massive job-losses here and a massive foreclosure wave, we look to be on a healthy pace for market recovery.