Still heading the right direction! The 30 year fixed rate mortgage dipped below 4% for the first time ever last week which should hopefully improve the market conditions.
For the Week Ending October 1st we saw a continued weaning of inventory with fewer year over year new listings and increased Pending sales.
New Listings decreased 21.0% to 1,219
Pending Sales increased to 32.7% to 926
Inventory decreased 22.8% to 23,177
The inventory will continue to come down in it’s seasonal pattern, but year over year we are still down. If you look at the chart below you can see that we are in the range of the 2005 inventory levels.
I am going to stick my neck out on this one and “Call it”. We have just entered “Balanced Market” territory. We have now dipped below 7 month supply which puts us on the upper edge of a Balanced Market. As far as staying in this territory is whole other matter…
In a Balanced Market we should see sale prices holding closer to the asking prices giving us some price stability. To see prices increase we are going to need demand to kick up a few notches to bring us into the Seller’s Market of 1-4 month supply. But after the last few years, this is great news.
View Full Report from Minneapolis Area Association of Realtors
- Monthly Skinny: August 2011 (twin cities real estate market update) (craigkamman.wordpress.com)
- Twin Cities Real Estate Market Report – Week Ending September 17, 2011 (johnmurphyreports.com)
- Twin Cities doesn’t have a housing inventory problem, we have a jobs problem. (craigkamman.wordpress.com)
- Shadow Inventory – Will it sink prices in Naples Real Estate? Maybe not. (nangoebel.wordpress.com)
- HSH.com Weekly Mortgage Rate Radar: 30-Year Mortgage Rates Drop to New Lows Again (prweb.com)
- Twin Cities Real Estate Market Update for Week of August 22, 2011 (johnmurphyreports.com)