Low Inventory Levels in the Twin Cities

Low Inventory Levels in the Twin Cities

Current inventory levels in the Twin Cities are at an 10+ year low.  We typically see less homes available on the market during the beginning of a New Year, however this coupled with the slight increase in interest rates over the past few weeks are creating the perfect storm for selling this Spring or sooner.  Last year (2015) started off with a huge bang – we saw multiple offers on just about everything we put on the market.  So what is different heading into 2016?

Less inventory.  Less homes for sale in the marketplace creates a higher demand for what is available.  Higher demand typically results in multiple offers and homes selling for over asking price.  In order to do this, the home has to be show ready and marketed properly or the seller will run the risk of just sitting on the market.  We are encouraging our sellers to get their homes prepped right now and get it on the market within the next 30-60 days before the rest of the competition floods the marketplace.  There is nothing better when selling a home than turning it live on the MLS and have several showings begin to over-lap.  When serious buyers begin to see other buyers come through the property at the same time as their showing, there is a “Fear of Loss”.  Fear of loss leads to offers at or above list price.

Interest Rates.  In Dec. 2015, the Fed voted to raise interest rates for the first time in almost a decade.  Interest rates still remain low, however with the indications of rates on the uptick vs. status quo, we may see more buyers wanting to get in while rates remain historically low.

These two factors alone should make for a very busy start to 2016 and the Spring Real Estate market.  If you would to view the full Monthly Indicator report from SPAAR, click here for the link.

About the Author

Katy Korby is the CFO of the Korby Home Team. Her passion is ensuring that our clients have an out-of-this-world experience selling their homes with the Korby Home Team. Katy comes to us with a diverse background and a unique skill set that enhances the client experience. Her attention to detail and care for people make her a wonderful asset to the team. Graduating with a degree in Theater, Katy has performed in numerous plays and most recently starred in a locally produced indie film that is being entered info film festivals around the nation. Katy’s experience in the work world include many positions within the accounting world including tax preparation, bookkeeping, and full-charge accounting. Most recently before joining the Korby Home Team, Katy was the Market Center Administrator for Keller Williams Integrity Realty in Roseville, where she was the full-charge accountant and handled budgeting and forecasting for the company as well as day to day operations and administration of an 80 person real estate office. Katy and her husband have two children, Libby and Calvin, and have lived in Como Park for almost two decades. In 2013, Katy completed the Tough Mudder 10 mile event and is a proud member of the “Finishers” group! For fun, Katy loves reading, photography and gardening and spending time with her family.