May Twin Cities Housing Supply Outlook

Housing Supply Outlook – May 2009

The May Housing Supply Outlook is available. Lately, there appears to be a jumbo-sized problem with home sales (if you know what we mean). Here's what to watch for:

While it's certainly welcome news that home sales are up in the Twin Cities metro, there's a big caveat to keep in mind pertaining to price points. All of the growth in sales can be found in the lower price ranges where foreclosure and short sales are more common.

The largest drops in home sales can be found in the price ranges above $350,000 where higher jumbo mortgage rates are charged to borrowers.

The inventory of homes for sale is now lower than it was a year ago for every price range except homes under $120,000, where it is still up 38.1 percent from this time last year.

-MAAR