Yes, the market is shifting.  That good old Supply & Demand from Economics 101 is coming into play.  Inventory levels continue to drop & sales are trending upward.  Barring some major economic issue or a new wave of Bank Owned Foreclosures coming on the market, Real Estate is starting to look a little more rosy.  Check out the Weekly Market Activity Report from MAAR (Mpls Area Association of Realtors).

Weekly Market Activity Report

Buyers don't live in a spreadsheet. When they find a home to love and cherish, they don't intellectualize it too much.  There are generally fewer homes on the market, they're selling more quickly and prices in most areas are no longer in a downtrend. Dwindling inventories means there's less competition and more pricing power for sellers, who are finally starting to be rewarded by strong buyer activity. Interest rates at 50-year lows doesn't hurt either. Love is in the air and all around the housing market.

Quick Facts

Change in New Listings    - 14.9%   

Change in Pending Sales  + 21.4%   

Change in Inventory          - 28.0%