New real estate listings for August 2018 were 7.6% higher than the same month last year… the biggest percentage increase since April 2015! New listings showed an increase over last year last month as well… could it be a sign the market is finally starting to break out of its relentless pattern of not enough new listings to feed buyer demand?
And although the total inventory of homes for sale continues to drop it appears to be slowing… August 2018 inventory also had the lowest percentage month-over-month drop since 2015.
I don’t see this as a scary market sign, but rather, a healthy sign the market could be starting a move towards a more normalized market balanced between buyer and seller. A balanced market is considered between 5 and 6 months of inventory and we still have a long way to go.
August 2018 still shows a strong sellers market, with a 2.5 months supply of inventory and average days on market until sale down to 40.
While closed sales remained amazingly constant, pending sales dropped indicating a potential drop in future closed sales.
Median sale prices continued to rise, 6.3% over last year in August 2018. Although % list price received was lower than at its peak over 100% in May and June, it was still at a very respectable 99.2% of list price in August 2018.
When examined by price range, homes priced below $500k continue to be in a sellers market, homes in the $500k-$1M price range continue to be balanced between buyer and seller, and homes in the $1M+ price range are in a buyer’s market.
Townhomes continue to be in shortest supply relative to demand.
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
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