This year so far, we saw inventory increase only 1.1% in January 2019 over the same time last year. This doesn’t seem all that significant, however when you compare it to January 2017 where we saw a 17.1% drop, this increase is an encouraging shift and a sign that we are moving towards a more balanced and “normal” market. Which, experts agree, is exactly what we need!
TOTAL HOMES FOR SALE
Closed sales were down in January (mostly from pending sales at the end of last year), but new listings and pending sales were both up… perhaps helped by the Fed’s decision to not raise interest rates in January due to growing concerns about affordability.
Median sales price continued to increase, as did percent of list price received… as the days on market continued to drop… competition for homes for sale is still around.
MEDIAN SALES PRICE
PERCENT OF LIST PRICE RECEIVED
DAYS ON MARKET
Overall months supply of inventory increased this January, to 1.6 months. Single family houses had the biggest supply at 1.7 months, with townhomes at 1.1 months and condos at 1.5 months. Keep in mind this is still a very low supply… it isn’t considered balanced until there is a 5-6 month supply.
It continues to be a seller’s market in all price ranges under $1,000,000, with less than a 1-month supply in price ranges $120k-$250k. Expect competition to continue to be fierce in those price ranges.
MONTHS SUPPLY OF INVENTORY
MONTHS SUPPLY BY PROPERTY TYPE
MONTHS SUPPLY OF HOMES BY PRICE RANGE
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.