A doctor who wants to determine a patient’s health checks out their vital signs:  their heart rate, blood pressure, lungs, etc.

What’s the equivalent for the housing market?

Trends in the following three things:

One. Inventory.

Falling inventory — also called “supply” — augurs well for future housing prices; increasing inventory, the opposite.

Right now, housing inventory in the Twin Cities is about 19,000 units — and  falling.

Two. Sales price as a percentage of list price.

In a hot market, homes sell at or close to list price — or even above.

In a cold market, Buyers demand — and get — deep discounts.

In the Twin Cities currently, sales price as a percentage of asking is around 92% — and falling.

Three.  Cumulative days on the market (“CDOM”).

In a Seller’s market, homes move quickly; in a Buyer’s market, they languish.

So, what’s happening currently?

It depends on the price bracket — higher always takes longer than lower — but over all, market time is increasing.

Mix all of the above together, and what kind of picture do these vital signs yield?

A soft market generally, punctuated by pockets of strength — especially in in-demand, moderately-priced neighborhoods close to the Lakes (think, Linden Hills in Southwest Minneapolis, Edina’s Morningside neighborhood, and Fern Hill in St. Louis Park).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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