DUST STARTING TO SETTLE

Minneapolis area sales last week were up a whopping 31% from the same week one year ago. For six weeks in row the percentage of increased sales has exceeded 20%.

• New listings declined 2.6 percent in the week ending June 13th compared to the same week last year. Over the last three months, new listings were down ten percent compared to a year ago.
  
  
• Pending home sales were up 34 percent from a year ago during the week ending June 13.
  
  
• In the past 90-days, pending home sales were up 27 percent compared to a year ago.
  
  
• Active listings continue to decline. The inventory of homes for sale declined 20 percent from a year ago during the week ending June 22nd. This compares to a decline of 19 percent during the last three months compared to a year ago.
  
  
• Days on the market until home sale have declined for each of the last six months when compared to a year ago.
  
  
• The supply/demand ratio, houses for sale compared to buyers, declined from a peak of 14.4 homes per buyer in December 2008 to 5.0 homes per buyer in June 2009. That's essentially a balanced market.
  

The combination of fewer new listings and increased pending sales is reducing the inventory of unsold homes, and days on market are declining. These are all positive trends. But low prices and historically low mortgage rates will not last. So, if you're looking to buy, there will not be a better time. And for first timers, remember the federal tax credit ends Dec. 1st. Which means if you don't sign a purchase contract until mid-October or November, you can just about forget about reaching the goal-line in time. The que will likely be full.

- L&M