It's only March and I am already seeing too little inventory for the numerous buyers out there looking for homes. Mortgage rates are still at historic lows which means buyers are ready to act. The Twin Cities inventory of homes for sale in February was down 19.4% compared to February of 2015 while real estate sales was up 9.5%.
Star Tribune article from Sunday, March 13th, "Home sales rose 6.7 percent in Twin Cities region last month", further describes the super-tight inventory, with the number of available properties down nearly 20 percent from a year ago. The main story, both nationally and in local markets, is the continuing decrease of the supply of inventory of homes for sale. The cure, of course, would be more inventory.
The graph below show the peak of inventory in the spring of 2009 with 11.4 months of Twin Cities Real Estate inventory. Now in February 2016, we are lower than we have been for 11 years, at 2.5 months of inventory.
The peak selling season has yet to begin, so we're still optimistic for an increase in activity in the coming months. New Listings in the Twin Cities region increased 3.0 percent in February to 5,848. Pending Sales were up 6.7 percent to 4,032. Inventory levels fell 19.4 percent to 10,953 homes for sale. Meanwhile, sale prices continued to gain traction. The Median Sales Price for the Twin Cities increased 3.7 percent to $207,395. Days on Market was down 9.4 percent to 96 days. Sellers were encouraged as Months Supply of Homes for Sale was down 28.1 percent to 2.3 months.
It's been a strong start for Rochelle Allison & Team selling 10 homes so far this year. I would love to add your home to our SOLD list. Still not sure you're ready to sell your home? We are happy to do a Comparative Market Analysis of your property to let you know exactly what your home is worth in TODAY's market. What's my home's value now?
Don't have a house to sell? Maybe you know someone who is thinking of selling. Feel free to share this post and information with them.