“Statewide, the new listing inventory fell 25% from a year earlier which will allow some of the excess inventory to be absorbed,” Russ Portele, President of the Minnesota Association of REALTORS®said.
Interest rates have been very stable and historically at very low levels. This increases a consumer’s ability to afford a home in their community and makes renting a less attractive alternative. Housing affordability over the last 6 months has been very high giving qualified consumers a number of housing opportunities.
“Last but not least, a recovering economy and rebounding job market are critical to a housing recovery,” said Portele. “Minnesota’s employment numbers have been improving giving confidence to employees who sat on the side lines fearing for their long term situation.” For the next couple of months, residential housing figures will be improving as the artificially high figures posted during the federal tax credit program of 2010 become an item of the past.
Watch this month’s video, the “Skinny” on the Twin Cities’ Housing Market: