Home Inventory Drops 25-40% In Popular Southwest Minneapolis Neighborhoods

Even with interest rates increasing to 5.5-6% we still have the lowest inventory of homes available for sale on record.  For example, since last year inventory is down 40% in Fulton, 30% in Lynnhurst, and 25% in Kenny neighborhoods of southwest Minneapolis.  These are some of the most popular neighborhoods in Minneapolis so it doesn’t surprise me that inventory is at all time lows.  Also, because prices have come up so much over the last couple years there are many would be sellers that can’t move because they can't afford the prices on the house they would be purchasing next after they sell their current home.  So I think we are still going to see high demand and low supply until prices rise to a point that inventory will eventually start to increase significantly.