Oct/Nov Housing Stats for the Minneapolis Association of Realtors

 

It’s that time of the month again when I share the most recent housing activity report.

Here’s a brief summation:

-New Listings took a 7.3% jump over this time last year.

-Pending Sales (a deal is on the table and waiting to close) are still down over historical levels, but not nearly as bad as last month.

-Current Active Listings are on their historical seasonal decline as winter approaches, but still up 10.5% over last year’s record breaking numbers. To see just how inflated the active inventory has become, take a look at the Historical Weekly Inventory For sale at the bottom of page 4.

-Average Days on Market is currently at 142 days, 20.3% higher then last year, which was by no means good.

-The Percentage of the Listing Price that sellers are getting at the time of sale is now at 93.1%. Values are on the decline and this just nails home the idea that in order to sell your home quickly in this market you MUST price your home UNDER the market estimate, rather then chasing the price down as values continue to decrease.

-The one bit of good news in all of this is that interest rates at currently at 6.3%, .3% lower then the national average.

-And my favorite part, the Absorption Rate. This is the period of time it would take to sell all the homes currently on the market if the faucet was turned off and no new properties entered the market. Therein is lies the problem, because that faucet is not getting turned off and new properties are going to continue to compete with current listings.

The absorption rate for homes priced between$150,000-$250,000 is currently around 8.3 months, but does that accurately represent the amount of time it will take to sell a home in the current market? No.

Of course that is far better then the rate for homes priced at over $1,000,000. The current absorption rate for those homes is a staggering 23.3 months, up four months from the same time last year!

Click HERE to read the full report.

If you have any questions regarding what all this actually means, write me a note, or use the Contact Me tab above and give me a call.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: