Massive Inventory and Sales Drops In Winter Compared To Summer
These two graphs tell you a lot about the real estate market in Minneapolis. The first graph shows the number of homes for sale each month over the last ten years in the $250,000-$375,000 price range. As you can see every winter total homes for sale drop dramatically compared to the summer months. The other graph shows total sales each month. Again, sales drop big time in the winter compared to summer. The bottom line is people don't like to move in the winter in Minneapolis because it is so cold and because of the holidays. There is just not a lot of good reasons to move in the winter when you can wait until spring or summer when it will be a lot easier and nicer outside. On the other hand, the #1 benefit to moving in the winter is that prices are lower in general, but that is about it.
So listings go down and sales go down a lot in the winter. But once spring and summer come a long everybody wants to sell and buy. The sellers want to sell their existing home and buy their new home; the buyers that waited until winter was over are out shopping and ready to buy as well. So the vast majority of all homes sold in Minneapolis happen during half the year.
It will be interesting to see how many sellers are holding off on putting their homes on the market right now and how many buyers are holding off on buying. Typically we would just be entering the busy season. But right now I can tell you I am not getting nearly as many calls from buyers and I am seeing more people hesitate to pull the trigger on purchases. I think sellers are waiting as well because of the state lock down. I still think if you find a great home in a great location for a great price then take it, but we could see more uncertainty in the market for a while. We just don't know. Nevertheless, these graphs will help in many ways when you study the market. If you are looking for representation on the buy or sell side shoot me a call or email. Have a great day.