The Market is Balancing

The past few weeks, I've watched the numbers of homes come for sale decline from 2007 levels. Inventory (the number of homes for sale) is still higher than 2007 but it will soon begin to decline.

For sellers, this is a glimmer of good news as it means there will be a balanced supply of homes for sale (around 6 months is considered a balanced market) instead of an over-supply like we have now - around 9 months of homes for sale across the Minneapolis-St. Paul metro area.

For buyers, this isn't bad news. But, if you're waiting for a rush of homes to come for sale as typically has happened in the spring, it may not be happening this year.

A balanced market is a good thing. It leads to renewed healthy appreciation levels of around 3% and renewed public confidence in real estate, the largest portion of most of our savings.