MINNEAPOLIS (WCCO) — The Twin Cities housing market is healthy, but area realtors say there is a need for new supply.
There were fewer homes for sale this past January than in January 2016, marking a 14 year-record for low inventory. Realtors say homes are selling quickly because so few are on the market.
WCCO’s Reg Chapman shows us how these numbers are impacting sellers and buyers in the Twin Cities Market. Realtor Henry Edelstein spends his days trying to help his clients.
On Thursday, he’s working on staging this home in the Highland Park area of St. Paul.
“It’s going to be listed for $625,000 when it goes on the market. Right now we’re getting it ready for sale,” Edelstein said.
Edelstein says the marketplace has just over a month supply, the lowest figure on record for any month since January 2003. Typically, a five to six month supply is considered a balanced market.
Cotty Lowry, president of the Minneapolis Area Association of Realtors, says people looking to find their first homes are having a hard time.
“There really aren’t a lot of homes out there, we need more. The hottest markets, everything under about $300,000, it kind of evaporates when it hits the market,” Lowry said.
On the flip side if you’re a seller, the news is good. The number of sales has increased faster than the number of listings coming in.
“For that person who’s living in a first-time home buyer’s house, it’s moving up to the next house. Are those homes available and for the baby boomer who wants to move out of there family home its finding the right condo,” Edelstein said.
Edelstein says patience is the key. He tells his clients you may bid on several houses and make compromises before landing that dream home.
Lowry says Wayzata, Lake Elmo and Orono are hot markets with about a five-month supply of homes for sale. He also says homes priced over $800,000 are the slowest ones to sell.