West Savage active inventory is starting to climb, and so are sales. We are still seeing low inventory, but the market is finally showing more listing activity. Interest rates, too, have risen a bit, and so buyers are continuing to stay busy. Perhaps some urgency has been created. Sellers must be careful not to confuse low inventory with overpricing: Appraisals are still conservative and we (and our colleagues) have seen a number of low appraisals come in this year. The smallest appraisal shortfall we have seen this year is $4,000. The largest was $130,000.
A sudden new trend hitting the metro real estate market this spring is the emergence of an out-of-state investor. The investor submits, via a variety of different real estate agents, lowball offers to listing agents. In cases where the seller has accepted the offer, the buyer then attempts to renegotiate the purchase price even further based on the inspection findings. In cases where the seller refuses, the buyer walks.
We personally have received offers from this investor on four of our listings, ranging everywhere from Jordan to Savage to Minneapolis. In all cases, the buyer never viewed the home. Other realtors across the metro are reporting offers coming in on their listings from this investor as well. It has been verified that the investor is indeed a legitimate buyer, but the obstacles to a satisfactory purchase agreement have been numerous thus far. We have counseled our clients accordingly.
This month, our West Savage absorption rate is 2.25. That means if zero new homes come on the market, it will take 2.25 months to sell our existing inventory.