After years of way more buyers than sellers, skyrocketing home prices, bidding wars and broken hearts, the number of available homes on the market has increased for the first time in two years, new data from Realtor.com revealed.
“I think what we’re seeing, which is an irregularity over the last 13 years, we’re seeing just a little bit more inventory out there,” Minneapolis Area Realtors board member Jerry Moscowitz said.
The data shows inventory is expected to grow double-digits over 2021 and offer buyers a better chance to find a home. New listings in the Twin Cities grew by more than three percent last month according to Minneapolis Area Realtors and the St. Paul Area Association of Realtors.
Analysts say if the supply of available homes for sale continues to grow beyond May, it could signal that the Twin Cities is moving to a more balanced market, with enough homes for sale to meet buyer demand. But it’s not there yet.
“We still have a long way to go before we call it a balanced market, which would be a 4-6 month supply of homes,” Moscowitz said. “But we have seen a little bit of increase year over year.”
However, while there may be more homes available, Moscowitz doesn’t expect much will change with housing prices. He anticipates prices will stay high and continue to increase.
Moscowitz also expects the bidding wars that prospective homeowners have engaged in will continue. And while houses are currently on the market for a bit longer, potential buyers should still act quickly.
“It’s still close to about a week in time but we do see houses sitting a little bit longer on the market. Again, it’s not where they’re out there for a great deal of time. I don’t want to give the perception that you can take your time. When you see a house that you like, it’s still going to be a good idea to act as soon as possible on it.”