By Sara Huebener
The Price Range Supply Analysis is one of my favorite means for gauging our local real estate market. I would like to talk about our local housing market in particular, for December 2008.
The Southern Twin Cities Association of REALTORS® Housing Supply Outlook reports that the inventory of homes priced between $250,000 and $500,000 (which is the predominant price point of the West Savage market) is down an average of 21.95% from last year's numbers. Simply stated, fewer people in the $250,000 to $500,000 price point are attempting to sell their homes at this time.
However, the report states that the months supply of current inventory is down -.45% compared to 2007. This tells us that homes in the $250,000 - $500,000 range are starting to sell faster than they were last year. When the months supply of current inventory in our market is declining, that tells us that houses are selling faster because homes are sitting on the market for shorter periods of time.
Finally, a review of the first-time homebuyer market is always important to residents of West Savage, because when a first-time homebuyer makes a purchase, the sellers in those transactions (when not bank-owned) translate into potential buyers for homes on the market in the West Savage price point.
First-time homebuyers need to make rapid decisions, because homes in their bracket are moving quickly. While the inventory of homes on the market that are priced under $120,000 is up almost 80 percent from last year, the months supply of homes in that same price point is down by 43.1%, meaning these homes are flying off the market. Once the foreclosures and short sales work their way through the system, West Savage should expect to see a healthy boost in home sales.
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