Listing Inventory: How Many Months’ Supply?
It takes a little deciphering, but those four numbers represent how many months of housing supply are currently available in St. Louis Park, Southwest Minneapolis, Golden Valley, and Minnetonka, respectively.
The significance?
All four of those markets are well below the 4-6 months considered indicative of a “balanced” housing market.
Housing Market Vital Signs
On the contrary, those areas — as well as many other Twin Cities communities — are (still) characterized by a shortage of inventory.
The upshot: Twin Cities home buyers have fewer choices, Sellers continue to have the upper hand, and conditions remain ripe for multiple offers, at least in desirable neighborhoods at lower price points.
See also, “Housing Market’s Vital Signs“; “More Housing Market ‘Vital Signs.‘”
P.S.: “Months supply” — also known as the absorption rate — correlates not just with market health, but price point.
Specifically, more expensive homes invariably take longer to sell than modest ones.
So, to avoid getting misreading signals, it’s important to limit comparisons to markets with similar-priced housing stock.
