Out of the 57 communities we sampled we pulled 22 communities experiencing a Balanced Real Estate Market in the Twin Cities Area.
- Buyer’s Market = 7+ Months of Inventory
- Balanced Market = 5 – 7 Months of Inventory
- Seller’s Market = < 5 Months of Inventory
Since the Twin Cities is a Seasonal Real Estate Market these numbers may not remain balanced as we enter January. Inventory in Minnesota starts increasing in January and peaks near Memorial Day.
Looking back at Summer we see that the Twin Cities Housing Market as a whole was Balanced for the majority of the year. It’s quite possible these communities could remain balanced for 2012. However, it’s also possible they’ll return to a Buyer’s Market. The top half of this chart is closer to Seller’s Market than it is a Balanced Market and the bottom of this chart is closer to a Buyer’s Market. I think the more likely scenario is the top half could see a Balanced Market for 2012 and possibly hint at a Seller’s Market.
My hesitation to say one way or the other has a lot to do with the economy. Until employers feel comfortable about hiring employees housing is going to take time to recover. Although I will say the Twin Cities Housing Market has been trending closer and closer to an up market. It’s just a matter of time until things finally balance out and Seller’s can enjoy selling their homes again.
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