Twin Cities Homes Selling in Record Time, But Key Differences Persist
Minneapolis, Minnesota (August 12, 2016) – Seller activity declined 5.5 percent since last July, as sellers introduced 7,522 new listings to the marketplace. Sales activity was slightly below year-ago levels. Closed sales fell 5.8 percent while pending sales—the number of signed purchase agreements—fell 3.1 percent. Buyers signed 5,560 new contracts and closed on 6,030 homes. That closed sales figure is on par with July 2003 levels. The July median sales price retreated slightly since June 2016, but increased 6.6 percent from July 2015 to $239,900. Mostly due to inventory constraints, prospective sellers are concerned about their ability to secure their next property in the current environment. Buyers saw little supply side relief, as inventory levels fell 18.1 percent to 14,457 active properties. The well-known inventory shortages haven’t slowed down buyers much, given June 2016 closed sales at a 12-year high.
Low inventory, however, has helped draw out stronger offers. The average percent of original list price received at sale was 98.4 percent, the highest figure for any July since 2005. Low levels of for-sale housing also means the homes on the market tend to sell quickly. Cumulative days on market until sale fell 15.9 percent to 53 days. That’s the fastest market time for any month since the beginning of 2007. Months supply of inventory fell 23.7 percent to 2.9 months—the lowest July figure on record going back to the beginning of 2003. Generally, five to six months of supply is considered a balanced market.