September Housing Supply Outlook
The September Housing Supply Outlook (HSO) has hit the streets. The HSO is a detailed look at that important and ever-shifting balance of supply and demand that breaks down the market by property type, price range and construction status to tell a more complete story of the market.
As always, in the interest of making your time with this report as useful as possible, here are some items to watch for:
- The months supply of total inventory in the Twin Cities housing market is 9.9 months for September, which is dead-even with September of last year. This marks the first time in our 4 years of data collection that we haven't posted a year-over-year increase.
- Condos continue to post the highest months supply of all property types, and the largest year-over-year increase. Paradoxically, it is condos that are seeing the healthiest increases in value. The increases are likely the result of small sample sizes, as opposed to any legitimate market improvements.
- There have been massive increases in activity in the lower prices ranges, likely due to an increase in lender-mediated foreclosure and short sale activity, as well as the widespread discounting traditional sellers are employing while the market sits in the buyer's favor.
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