Most analysts agree that we are not in the midst of inflating another housing bubble. Instead, we are sometimes seeing seemingly dramatic price and sales increases, but off of artificially low baseline levels. Private equity firms and first-time buyers have bought up a lot of inventory, while some sellers await further price recovery. Credit remains available but not abundant, so lenders are avoiding the facilitation of another bubble. Default rates and foreclosure activity are at multiyear lows. As of now, the housing recovery is intact.
In the Twin Cities region, for the week ending November 2:
- New Listings increased 5.5% to 1,185
- Pending Sales increased 6.9% to 972
- Inventory decreased 2.6% to 16,034
For the month of October:
- Median Sales Price increased 11.4% to $195,000
- Days on Market decreased 27.2% to 75
- Percent of Original List Price Received increased 1.4% to 95.8%
- Months Supply of Inventory decreased 12.5% to 3.5
All comparisons are to 2012
Click here for the full Weekly Market Activity Report.From The Skinny.