Our local REALTOR Association reports"
As the final days of summer start to wane, Twin Cities home buyers posted their 14th consecutive week of double-digit, year-over-year gains. For the week ending August 13, there were 47.4 percent more purchase agreements signed than during the same week last year. A total of 952 buyers entered contract.
Sellers continued their slowdown, introducing only 1,387 new properties to the marketplace. That's 13.7 percent fewer than last year at this time. Slowed listings and comparatively strong sales figures have helped inventory levels post their largest weekly decline on record. The 24,232 active listings for sale were down 19.7 percent from last year. That record will likely be broken next week.
Renewed economic uncertainties combined with the Fed's announcement to maintain low interest rates could motivate some buyers to postpone their purchases. Though apparent in financial markets, the trepidation has yet to show up in local housing numbers. July's monthly data actually brought relief to some critical market indicators. Price declines are shrinking along with seller concessions, and absorption rates are finally moving in the right direction – toward balance.
While our market is experiencing the normal pre-Labor Day slowdown as people get kids ready for school and wrap up summer vacations, we ARE continuing to see buyers emerge into the marketplace. The first week in August, we had two homes sell in one day - the day 30-year rates dropped to 3.75 percent - and the buyers on both homes had stipulations that our sellers needed to sign the purchase agreements by 9:00am the following morning before rates changed. i.e. the low rates are definitely helping the market!
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