Your Market Update - September 2014

Compared to September of last year the inventory of houses for sale is up 8%, a welcome reprieve for buyers eager to buy but facing a shortage of homes for sale.  Whereas a year ago we had approximately 3-months worth of homes for sale, that number today sits at 4.4 months.  We typically view a "balanced" market (meaning no clear edge to either buyers or sellers) as having between 4 and 6 months of inventory available.  We appear to be settling in that range as we head into the (typically slower) winter months.

Along with a rise in inventory, we've seen a slight downward tick in the number of pending sales recently.  We use pending sales as a leading indicator, since pending sales represent homes being under contract but not yet closed.

However, even though we are seeing pending sales fall slightly, it hasn't affected prices....yet.  Compared to September of last year, the median sales price rose 5.1% to $205,000.  According the Minneapolis Association of REALTORs, we have now seen 31 consecutive months of year-over-year price increases.  We've certainly come a long way since the market crash of 2007-2008.

It will be interesting to watch the market as we head into the winter months.  Real estate in Minnesota is very much cyclical and tied to the weather - spring and summer see the largest number of sales, fall and winter typically see a downturn in sales.  My prediction is that with inventory up, there will be prime opportunities for savvy buyers this winter.

If you have questions about a specific area or neighborhood, contact me today - I'd be happy to create a custom report for you.

Information and statistics gathered from the Minneapolis Association of REALTORS.