The Headlines Are Getting It Right, Supply Side Correction Continues

March 9, 2012

It seems now that the headlines are getting it right, the “Supply-side correction continues,”
“Home buyer demand strengthening,” “Market heads toward balance.” There is a
very real sense that the landscape is shifting. We don’t want to overstate the case
this month, as this coming spring will tell all. It’s been around five
years since the peak of the housing bubble and the ensuing aftermath. As we
enter into a new year, let’s see if the first month of the sixth year brought any
encouraging signs.
New Listings in the Twin Cities region decreased 9.0 percent to 5,112. Pending
Sales were up 25.5 percent to 3,149. Inventory levels shrank 28.1 percent to
16,463 units.
Prices lowered somewhat. The Median Sales Price decreased 3.4 percent to
$140,000. Days on Market was down 8.3 percent to 142 days. Absorption rates
improved as months supply of Inventory was down 35.7 percent to 4.6 months.
No one likes feeling stuck. The fate of housing and the economy remain tied
together in a single garment of destiny. As long as housing remains weak, many
Americans are unable to relocate when an employment opportunity arises. Instead,
they’re anchored to a house that’s underwater. Several key efforts aimed at easing
refinancing, converting vacant properties to rentals and getting some private
equity in the game are all reasons to stay alert and informed.

Minneapolis Homes Key Metrics