Home supply has been falling consistently over the last 18 months. As home supply falls and demand for homes rises, buyers are finding it harder and harder to find homes on the internet that are still “active” and not “pending.” It seems as of lately there really is little housing stock to choose from.
Competition for homes is growing and the buyers market is taking a turn.
Home supply is down 51% in 18 months. According to the National Association of RealtorsR, Existing home sales has increased by 4.57 million last month on an annualized basis. This is a whopping 4% increase just from Decembers numbers and puts the benchmark at a 20 month high.
Not since may 2010, at towards the end of the homebuyers tax credit program have so many pre-existing homes for sale been sold. A pre-existing home is a home that was previously owned and occupied and does not account for new construction. Beyond these stats above however, there are still many reasons todays sellers should be excited such as the national home inventory as well as interest rates holding low.
2.3 milliion homes are for sale nationwide, with mortgage rates holding low and a U.S. economy bringing buyers into action, at the current sales rate we see that the U.S home inventory would be depleted just 6.1 months from today. This rate is more than twice as fast if you look at the numbers in 2010. Now with this being said, it does not mean that there will be no homes for sale in 6 months, it means that there is a 6 month-housing supply not considering the new homes that are coming on the market every day.
Minneapolis housing demand statistics
|Price Range With Strongest Sales:$120k and Below||Property Type With Strongest Sales:Townhomes and Twinhomes||Construction Status With Strongest Sales:Previously Owned|