In the Twin Cities metro area, it doesn’t matter where you go the supply of homes for sale is low. The demand for houses is still high. You would think builders would be building like crazy right now. There is some building going on if you are in the market for and can afford a large expensive house.
Housing supply is measured in months but in some parts of the metro area, there isn’t even a month’s supply. That means that at the current rate of buying and selling the current inventory of homes on the market would be sold in less than a month.
Here is a quick look at the entire metro area and St. Paul and Minneapolis. Minneapolis has a 2.1 month supply, Saint Paul a 1.8% supply and there is a 2 month supply in the metro area. In first-ring suburbs, there is slightly more than a one-month supply.
A six month supply of homes is considered a balanced market that doesn’t favor buyers or sellers. Our local market has been a seller’s market for about the last 7 years or so.
What does this all mean? It means that now is a fantastic time to sell a house.