Tuesday, September 13, 2011

Weekly Market Update: September 12, 2011

With some September data in the mix, seller activity showed a continuation of its intermediate-term holding pattern, with 14.3 percent fewer listings than the same week in 2010. The 1,313 new listings were more or less on pace with their 3-month 12.0 percent average decline.

Similarly, buyer activity continued to post large gains over the 2010 slowdown. This time, Twin Cities home buyers entered into 976 purchase agreements or 35.6 percent more than the same week last year.

As we've previously pointed out, shrinking inventory levels can be an important market signal. There are currently 23,849 active listings from which buyers can choose, 20.9 percent fewer than last year at this time.

Next week, watch for a changing story with absorption rates and seller concessions. As supply and demand attempt to find neutral ground, sellers are making fewer concessions in order to sell their homes.

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