(Image courtesy MAAR, click for larger version)
Houses for sale in the Minneapolis/St. Paul area have been dropping since May of this year; a sharp contrast to prior years where inventory stayed high until September. New listings are down versus the same time last year and sales are so far ahead that inventory is dropping quickly. This has lead to scarcity of inventory at certain price points, types and areas.
This time of year brings both colder weather and a cooler housing market. Buyer activity is lower between Thanksgiving and mid-January and many sellers take their homes off the market during this time too. If you are a buyer and are still looking, this means less for you to look at but also less competition from other buyers. If you are a seller, you should consider staying on through the holidays as you will have far less competition than there has been in 3+ years! You can always make your home “www.orarily not available for showings (TNAS)” for the days surrounding the big holidays.
Given the changed dynamic in the housing market this year, I believe that 2010 may see inventory as high as it was in 2009 but I don’t see it going any higher than that. In fact, I believe we may see inventory further contract in 2010 – a good sign for a stabilizing housing market.
