The residential real estate market continues to evolve as we approach the winter months in the Twin Cities. I have heard anecdotal stories about the market cooling down after a fast paced summer. At the same time I have heard contradictory stories about homes selling within 24 hours, listings that receive multiple offers and sell over list price. Local media has been trying to spin the story of a market that has cooled considerably. However, the statistics do not support this belief. In reality, we are experiencing a season transition, but a less dramatic one than is typical for the Twin Cities housing market. In some areas the lack of listing supply is an issue and this results in a tighter market for buyers, while in other areas the supply has increased to the point of a more balanced market. In general, the market is moving in the direction of a more balanced market because listing supply is increasing as sellers gain more confidence in the market. Last week we saw a 21.7% increase in listings over the same week in 2012, while pending sales declined 2.7% and inventory decreased 5.6%.
So are we in a hot market or a cool market? I say both. In some areas and price ranges it is a sellers’ market, while in others the tables have tilted toward the buyers. One thing is for certain, we will be experiencing a market wide slowdown in sales in about a month. If you are a buyer or seller, time is of the essence.