Inventory Metrics Favor Move Up Homebuyers!

In the Twin Cities Metro, 5 months of housing supply at a given price range is considered balanced. Going above 5 months supply, indicates a buyers' market and conversely, going below 5 months supply points to a sellers' market. Take note of what is occuring in the chart below.

In part, the $8000 First Time Homebuyer Tax Credit --which was just extended-- has pushed the inventory levels at the lower end of the spectrum into sellers' market status. At the same time, the inventory levels of higher priced homes have remained in a buyers' market. This dynamic creates a great situation for the move up homebuyer; selling into a lower inventory market and then purchasing into an excessive inventory market.

Month’s Supply of Current Inventory—All Homes

Price Range.... 1-09.... 1-10.. Change 1-09 to 1-10

Under $120k .__ 6.5.........2.6 .......... ....-60.1%

$120k to $150k_ 7.8........ 4.0.............. - 48.0%

$150k to $190k _7.0........ 5.1...............- 27.4%

$190k to $250k_ 6.2........ 5.3...............- 15.5%

$250k to $350k_ 7.4___. 6.3.....6........- 14.9%

350k to $500k __9.6....... 7.9........... . ..- 17.1%

$500k to $1 mil. 13.2...... 13.1 .............. -1.3%

$1,000,001+..... 22.5...... 30.2............ ..+ 34.0%

All Price Ranges... 7.6........ 5.0................- 34.0%