In St. Paul, we currently have an absorption rate of one month for housing. For the 7 county metro area, there is a 1.7 month supply.
Absorption rate calculates how long it would take for all of the houses currently on the market to be sold if. It is a good indicator of the balance between supply and demand.
In previous years the peaks on the chart occurred in the Winter and the valleys in the summer. The last dip on the chart occurred this past May.
This December we are saying record-breaking year-end absorption rates. 2020 continues to be the best year for home sellers in most parts of the metro.
Buyers can expect higher prices and multiple offers with some good news in the form of interest rates that are at record lows and should remain so for the next couple of years.