Quote:For the first time since 2004, the supply of houses for sale across the Twin Cities area has begun to shrink. But with prices and the number of home sales still lagging behind last year's numbers, it's too soon to say the market's hit bottom.
In May, the number of homes for sale in the federally defined 13-county metro area was almost 3 percent lower than during the same period a year ago, according to data released Wednesday by several Twin Cities-area Realtors' associations. Last month, 9,436 new listings came on the market, a 16.2 percent decline from last year, according to the Minneapolis Area Association of Realtors.
"The market is losing weight," said Kevin Knudsen, president of the Minneapolis Area Association of Realtors and a branch manager for Coldwell Banker Burnet. "If this pattern continues, it [signals] the recovery of that marketplace."
Though the number of pending sales was down again last month -- by 7.6 percent from a year ago -- the Realtors' groups say there's cause for optimism because that drop is smaller than the double-digit declines of previous months.
The number of Minnesota MLS listings has gone down, a hopeful sign for those who want to sell their homes in the Minneapolis, St Paul metro areas. For those who are optimistic about the MN housing market, this is a very good sign that things will start looking better soon. If the inventory keeps climbing, it can cause a cascade of events that further damage the fragile housing market.