Graphic above from the Minneapolis Area Association of Realtors Housing Supply Outlook (Sep 09 PDF):
“The single-family detached market segment is rapidly approaching a balanced equilibrium. There are currently 6.3 months of supply available in that segment compared to 8.0 and 11.7 months in the townhome and condominium segments, respectively. The lower price ranges of the single-family detached segment are actually now extreme seller’s markets, with only 2.3 months of supply available under $120,000, for example.”
While this may be good news for home sellers, it is a shot across the bow for home buyers - especially those in the market for single family homes under $250K - the pendulum is swinging towards a sellers market in all but the $500K+ price bands. Condo’s and townhomes still have a supply glut to overcome, which likely means further price erosion.