Pending sales in the 13-county Twin Cities were up 33.7 percent compared to the same week during the post-credit cool-down of 2010. In total, 901 home buyers entered into purchase contracts. This marks the fifth consecutive week of double-digit year-over-year gains in pending sales activity. The last time we could proudly display that badge was for the week ending November 7, 2009.
Seller activity wasn't quite as robust. New listings were down 9.1 percent from 2010 to 1,572 new properties. Increased sales activity in conjunction with stable or falling listing activity should be met with continued market correction, including faster absorption rates, quicker market times and fewer seller concessions.
Inventory levels have begun to round off their seasonal peak, posting their first week-to-week decline in 18 weeks. The 24,078 active listings currently for sale represent 11.6 percent fewer than the same time last year.
Moral of the story: with every new week of truly comparable, unbiased data, our perception of the market gets more and more clear. Though we still have a ways to go, we like what we're seeing.
Prices still need to drop 25% to 30% before affordability/income levels equate to well rounded bottom. Of course, they could always lower the qualification standards and write bad loans again... Shadow inventory looms. Negative reports and articles dominate the newspapers. The trickle strategy of distressed inventory onto the market will not last in the long run because the financial industry is really hurting and they will need to rid these toxic assets from their books. Home prices are still in bubble. Just go back 10 to 12 years and research forward...
Posted by: Dan | June 22, 2011 at 09:13 PM