Unsurprisingly, the Twin Cities housing market found it difficult to battle through the monumental snowfalls seen during the week ending March 3. With schools and offices closed throughout the metropolitan area due to the inclement conditions, buyers and sellers followed suit. Compared to one year ago when weather conditions were relatively normal, new listings fell by 23 percent and pending sales fell by 28 percent. Time will tell just how much of this decline can be attributed to meteorology rather than general market conditions.
This week's edition of the MAAR Weekly Market Activity report includes updated March 2007 figures for the Housing Affordability Index (HAI) and the Housing Supply Outlook (HSO). The HAI grew to 141 due to another dip in interest rates and a slight decline in home prices. As our market continues to work through its post-boom correction period, housing affordability is making important improvements. Home prices, interest rates and consumer income will affect the HAI.
The HSO grew to 7.0 months, which means it will take approximately 7.0 months for the current supply of available properties to sell. The market is considered balanced when there is roughly a 5-month supply of homes available for purchase. Previously owned homes have 6.4 months of supply, while newly constructed homes have 10.5 months of supply.
Sharla Stafford, Realtor
Coldwell Banker Burnet, MTKA Office
Cell: 612.282.6895
Direct: 952.470.2578
Office: 952.474.2525
Fax: 952.474.9583
www.StaffordFamilyRealtors.com
skstafford@cbburnet.com
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