October 2009 Real Estate Outlook

October Housing Supply Outlook

The October Housing Supply Outlook just hit your intertubenetz. As usual, here's some quick takeaways from this dense and detailed look at supply-demand dynamics in the Twin Cities housing market:

Takeaway #1: If you're buying a home in the price range below $120,000, you're gonna have to move fast. There's only 2.9 months of supply in that range, which places it in the extreme seller's market category. The reason for the tight inventory picture? There's been a huge upsurge in home buying activity—sales are up 127.5 percent in that category over the last twelve months.

Takeaway #2: The number of new construction properties available for sale continues to shrink rapidly as builders pull back from creating new inventory. The current inventory of 2,426 listed new construction properties in the MLS system represents a drop of over 1,200 units from a year ago.

Takeaway #3: Unfortunately for builders, new construction home sales have also rapidly declined, falling by 18.8 percent (over 800 units) in the last twelve months.