Many sellers and builders are in a good position for financial gains, as the economy continues to favor putting existing homes on the market and building new homes for sale. We are finally beginning to see some upward movement in new listings after at least two years of a positive outlook. There may not be massive increases in inventory from week to week, but a longer-term trend toward more new listings would be a good sign. Low inventory should continue to create a competitive situation for buyers, causing price increases over the next several months.

Quick Stats: 

∙  New Listings in the Twin Cities region decreased 7.2 percent to 7,321.
∙  Pending Sales were down 6.6 percent to 5,684.
∙  Inventory levels fell 25.1 percent to 8,958 units.
∙  Median Sales Price increased 8.6 percent to $266,000.
∙  Days on Market was down 10.2 percent to 53 days.
∙  Months Supply of Homes for Sale was down 25.0 percent to 1.8 months.

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This winter and spring exhibited unseasonal weather patterns in much of the country. As the seasons change to something more palatable, wages and consumer spending are both up, on average, which should translate positively for the housing market. Being quick with an offer is still the rule of the day as the number of days a home stays on the market drops lower. Along with the purchase market, buyers should be aware of pending mortgage rate increases. Acting now could potentially help them secure a lower interest rate.

Source: Minneapolis Area Association of REALTORS®