Nothing like a 10″ snowfall on April 16th! Oh Minnesota. Despite the high levels of April snows that isn’t stopping buyers heading out in bunches for showings. Open houses have been packed. Pre-approval letters are being sent out in droves. This is all good news, except for the fact that we have no listings.
They say a “healthy” market, essentially meaning we have an even number of buyers and sellers, is between 4-6 months worth of inventory(1). What that means is if everyone stopped putting their house on the market starting May 1st we would have 4-6 months worth of inventory to sell before we ran out of homes. At the bottom of the market in 2010/11 we had upwards of 8-10 months of homes on the market. A strong buyers market. Now, however, is a different story. Here is some of the months of inventory in the Twin Cities(2)
New Brighton: 3.0
St. Anthony: 1.7!!
Entire Twin Cities area put together: 3.1
So your best case scenario is if you are looking in New Brighton or Edina because they are closest to the bottom part of an equal market of 4 months. If you are looking in St. Anthony, like many of my buyers are, it’s been a tough go. These low levels of inventory have caused a rash of “charts” that say sales are declining from last year. Of course they are because we have no homes to sell! This is causing homes to sell in less than 24 hours. I’ve seen homes in Shoreview sell in an hour. Multiple offers are also commonplace in this market. We hope the increase in temps the next week and these numbers will convince sellers to put their home on the market to help ease some of that but if you are looking right now, don’t get frustrated. There is a home out there for you, it just may take a little more time than normal!
(1) Data from keepingcurrentmatters.com
(2)Data from Minneapolis Assocation of Realtors; mplsrealtor.com