For decades now, the real estate industry has been both humbled and invigorated by the strong and direct relationship between the labor and housing markets. As goes the economy, seemingly so goes housing. That relationship was especially clear after the 2007 recession. The economy added 163,000 jobs in July, the highest figure since February. Our economy is growing, but not as quickly as many would like. Meanwhile, inventory drops and surging buyer demand from renters and first-timers are anchoring home prices and giving sellers more power than they’ve had in years.
In the Twin Cities region, for the week ending July 28:
• New Listings increased 8.3% to 1,430 • Pending Sales increased 20.9% to 1,149 • Inventory decreased 30.5% to 17,103
For the month of June:
• Median Sales Price increased 10.2% to $178,600 • Days on Market decreased 22.0% to 113 • Percent of Original List Price Received increased 4.1% to 95.1% • Months Supply of Inventory decreased 42.6% to 4.6