Wednesday, January 23, 2019 / by Cooper Riach
Let’s start with the one of the most common questions our team is hearing as we enter the new year. “What’s the market like right now?” Here is our brief overview to shed some light on the uncertainty being felt in the current real estate market.
Here in the Twin Cities, overall market inventory is low. This is the number of homes currently being offered for sale. There is a 1.7 month supply of inventory. This is actually up 13% from last year at this time. But overall, it is still under what we consider “normal”. So you may be wondering what makes up a seller’s or a buyer’s market? This is strongly set by the actual inventory of homes. Anytime inventory has under a five month supply, we consider it a “seller’s market”. When we reach inventory levels over a six month supply, we consider it a “buyer’s market”. Rarely do we see a completely balanced market.
Buyers continually enter the real estate market. First time buyers, buyers moving up, buyers down-sizing, as we enter and exit different seasons of our lives, our space needs change.
Let's take a look at days-on-market, commonly referred to as DOM on the MLS (Multiple Listing Service). How long homes typically sit on the market for sale. Last year at this time, a listing would sit on the market for an average of 61 days. This is from the time it enters the MLS until an offer is accepted. This year, it dropped to 57 days. That may not look like a lot but it still shows that there are buyers in the market and looking to buy.
We also look at average sales price. At this time last year, the average sales price here in the Twin Cities was 2.6% lower than this year. That means, houses appreciated 2.6% (on average) since the same time last year. This varies by location and condition. So a house $200,000 house last year is around $205,000 today not including the tax savings and other benefits of home ownership.
Hopefully this gave you a very brief overview of our current real estate market. Here at the Huerkamp Home Group, we consider ourselves teachers and advocates. We want to empower you with knowledge to make informed decisions when you consider real estate for yourself or those around you. If you would like more information on buying or selling, contact our team at www.HHGUS.com.
We invite you to follow us on social media. We have a lot on the radar for 2019 in terms of education, fun, events, tools and more! www.facebook.com/huerkamphomegroup
Thank you to the Minneapolis Area Association of REALTORS https://www.mplsrealtor.com for the stats used to write this blog. We credit them for the tracking and stats that help us keep a pulse on the market.