For the week ending February 26, home purchase activity in the Twin Cities diverged further away from last year's tax-credit-inspired market. There were 606 purchase agreements signed during the week, which made for a 30.2 percent decline from year-ago levels. On average, over the past three months, Twin Citizens made a less-distorted 9.5 percent fewer home purchases than they did during the same three-month period in 2010.
On the supply side, sellers brought 1,238 new homes onto the market, or 27.8 percent fewer than the same week last year. The three-month average pace of listing activity was 16.1 percent slower than it was last year.
Both the 2011 and 2010 inventory levels have begun to climb at this time of year, which is normal. Sellers were more likely to list their home at this time last year knowing that credit-motivated buyers were more determined to purchase. It seems as though sellers wanted to ensure their property appeared in preliminary MLS queries while buyers continued to shop around for the best value up until the deadline.
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