From a national standpoint we are starting to see inventory levels stabilize and in some parts of the country actually go down in other parts. In the meantime existing homes sales nationally rose 1.4% in September and inventory fell by 1.6% during the same time. Here in Rochester, Minnesota the MLS has reported real estate sales down by 9.9 % in September from a year ago however new and back on market only rose by 1.9% for the same period. In addition, the latest Standard & Poor’s Home Price Index may be hinting price declines are starting to moderate nationwide. Here in Southeast Minnesota we seem to typically trail the national averages but if these trends continue I look for a upturn in sales and a stablization on price declines by the end of this current quarter. It will be interesting to see how the market responds after the elections are held. I beleive part of the markets problem is low consumer confidence which is apt to change once the nation knows there is a clear direction politically for the country.
You can see the latest Standard & Poor’s Home Price Index at www.shawnburyska.com/SPHomePriceIndex.pdf