Posted in: Market insights

April 2017 Market Insights

Market Insights April 2017

The inventory squeeze is creating a drag on home sales in the Twin Cities metro area, according to new data from the Minneapolis Area Association of REALTORS®. There are simply not enough homes for buyers to purchase.

A slight uptick in new listings over the previous year offers a little hope, but not a lot of relief for buyers who are running into tough competition and rising prices.

Key insights
(All comparisons are year-over-year)

  • New listings in March: 8,030 — up 1.3 percent
  • Inventory of existing homes for sale fell 20 percent
  • Pending sales fell 3 percent
  • Median sales price: $237,500 — up 7 percent
  • Average days on market: 73 — down 14 percent


Economic check up

Inventory is a problem nationwide

The story of dwindling listings and high buyer demand is far from unique. Many areas in the country are experiencing inventory shortages for a variety of reasons, including:

  • The average homeownership tenure has increased to nearly eight years—compared to about 4 years pre-recession.
  • Investors own a larger share of homes; they tend to keep properties longer than typical owners.
  • Sellers are concerned about facing a tough buying market once they sell their current place.

Consult a professional

For homeowners who want to move but are wary of facing the market as a buyer, a REALTOR® can advise solutions such as: 

Consider new construction

Let your Realtor help you make a competitive offer

When buying in a sellers’ market, it’s important to work with an expert Realtor. They can help you make an attractive offer using smart tactics including:

  • Make your highest and best offer first
  • Nix contingencies (except the inspection)
  • Get pre-approved and bring your best down payment
  • Be flexible to what the seller needs for closing dates
  • Write a love letter to the sellers

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Status Definitions

For sale: Properties which are available for showings and purchase

Active contingent: Properties which are available for showing but are under contract with another buyer

Pending: Properties which are under contract with a buyer and are no longer available for showings

Sold: Properties on which the sale has closed.

Coming soon: Properties which will be on the market soon and are not available for showings.

Contingent and Pending statuses may not be available for all listings