During a balanced housing market, there is a six-month supply of housing for sale. During a buyers market, the supply skews to
a supply that is greater than six months. During the housing crash which was a strong buyers market at times, there was a 10-month supply of housing on the market.
During a strong seller’s market, there is less than a six-month supply. Right now in St. Paul, there is a 1.3-month supply which indicates a strong seller’s market.
Some parts of the country might be experiencing a balanced market or even a seller’s market but that doesn’t impact the strong seller’s market in the Twin Cities.
During sellers, market houses sell quickly, and often they receive multiple offers. Look for prices to continue to rise this year due to the high demand for housing.
Housing supply is a measure of how long it would take to sell all of the houses that are on the market if buyers keep buying at the same rate.
Most of the news about the real estate market comes from the coasts and may not apply to our local market in the Twin Cities.