The Twin Cities real estate market continues to improve at a stronger pace than most industry insiders expected, including myself. Buyers have been coming out of the woodwork to take advantage of all time record low interest rates – one of my clients just locked in a 2.875% 30yr FIXED FHA loan!
Historically in the Twin Cities, Sellers like to hibernate until after the first of the year and so the available inventory of homes for sale in the Twin Cities drops dramatically from its summer highs to its winter lows:
Chart courtesy MAAR, data from RMLS of MN.
With another precipitous decline in inventory coming this winter, we’ll likely end up the year with between 11,000 and 12,000 homes for sale in the Twin Cities area. This would bring us down 55%-60% from our highest seasonal bottom in December 2007.
Record low levels of housing for sale is the best thing that could happen in our market right now. If you are a seller considering taking your home off the market over the winter or are thinking of waiting until next spring to list your home, I recommend you talk with your agent to see what’s going on in your specific market and consider having your home for sale this winter. With far fewer homes for sale, your chances of selling this winter are the best that they have been in many years.
