From the Minneapolis Area Association of Realtors weekly report – August 1, 2011:
For the week ending July 23, Twin Cities home-buying activity increased 54.3 percent while home-listing activity declined 13.2 percent compared to the same week in 2010. Buyers entered into 1,040 purchase agreements while sellers brought 1,380 new properties onto the market.Sales are up, listings are down. We’ve heard it all summer.
What else is new? Well, inventory levels are down 17.0 percent from 2010, which is the largest decline in 80 weeks or since January 2010. Buyers now have 24,897 properties from which to choose.Let’s visit some monthly numbers as well. The average amount that sellers receive on their asking price declined 2.1 percent in June to 91.4. Market times were up 17.7 percent to 140 days, prices were down 9.3 percent to $165,000. Each decrease or increase was the smallest in several months. Meanwhile, months supply of inventory shrunk 0.1 percent to 8.1, the first small yet measurable decline in 12 months.
Don’t be deceived by the rocket launch numbers in the home buying increase. We knew the comparisons would be spectacular once we got beyond the 2010 tax credit period for comps. The good news is inventory is declining. However 3 key things to keep in mind:
- Prices have declined by 9.3% compared to one year ago
- It’s taking longer to sell homes – now 140 days on average to get a contract and go pending
- Sales price vs. asking price has declined a full 2 points now to 91% of asking price
Sellers, you can sell your homes, but the number of buyers out there is quite a bit lower than it’s been in years as you can imagine. If you get your home priced right, it will sell. These stats tell me that most sellers are still about 10% overpriced.
- CoreLogic and Tom Lawler on Declining Home Prices and Inventory (johnmurphyreports.com)
- CoreLogic: Shadow Inventory Declines to 1.7 Million Homes (johnmurphyreports.com)
- Case-Shiller Index: Minneapolis Home Prices Decline 11.7% Year over Year – Now at 2000 Price Levels (johnmurphyreports.com)