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Market conditions around the Twin Cities metro area are similar to what they were in 2006.  The blue lines show the number of homes being listed, while the red lines show the number that are receiving offers each month.  At the same time the supply/demand ratio, peaked at 10.2 months in December of 2006, and was down to 7.32 in February and is projected to be 5.53 months for March 2007.

The Supply-Demand Ratio is calculated by comparing the number of homes for sale at the beginning of each month with the number of total pending sales for the month. The higher the Supply-Demand Ratio, the more supply there is relative to demand. The most recent months are based upon projected pending sales.

As I work in the market each day I am noticing that buyers are unusually cautious, they view more properties before making a decision and always offer less than list price no matter how good the price is. Sellers seem to be getting more practical when it comes to pricing and a bit more patient.  We are still seeing multiple offers on some properties.

Realated stories:

WASHINGTON, D.C. (March 13, 2007) -  The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.95 percent of all loans outstanding in the fourth quarter of 2006 on a seasonally adjusted (SA) basis, up 28 basis points from the third quarter, and up 25 basis points from one year ago, according to MBA’s National Delinquency Survey.  From the Mortgage Bankers Association

NEW YORK – Stocks plunged Tuesday, driving the Dow Jones industrials down more than 240 points to their second-biggest drop in almost four years, as troubles piled up for subprime lenders. [Link]