Gradually and oh so slowly the number of homes on the market in St. Paul is rising. Here are absorption rates for 4 metro counties. The numbers for Dakota county are almost exactly the same as they are for Anoka County.
Absorption rates show how long it will take for all the homes on the market to be sold if buyers continue to purchase them at the current rate. Also, assuming that the supply of houses on the market remains steady. The overall absorption rate for the 7 county metro area is 1.6 months.
Housing supply is the tightest in Ramsey County and the trend line is flat. We are in a very strong seller’s market. In a balanced market that does not favor buyers or sellers, there is a six month supply of houses on the market.
During the housing market crash ten years ago we saw absorption rates at around ten months. That was a strong buyers market. Some of those buyers are today’s sellers.