As the waters of several Minnesota rivers swell, so too does the inventory of Twin Cities residential homes on the market. For the 17th consecutive week, the number of active listings for sale was greater than the same week in the year prior. For the week ending September 18, the 27,408 homes on the market made for a 9.5 percent increase over last year at this time.
Sellers are off the hook; it isn't listing activity that's causing this-instead, it's the slowed purchase activity. The 596 purchase agreements were 42.9 percent slimmer than last year's 1,043 contracts signed during the same week. We knew this year would be front-loaded with activity, but we didn't know by how much. Calling it substantial would be an understatement.
The 1,638 properties that came on to the market were only 11.3 percent lighter than last year. As mortgage rates continue to hang tight at historic lows, it would appear that folks are simply staying put and allowing both economic uncertainty and turgid rivers to subside.