New construction listing inventory continues to drop as builders cut back on new projects and focus on selling existing units. The number of new construction units on the market has fallen by 17.5 percent when compared to this time last year and are being sold at 7.4 percent less per square foot.
Condominiums face a tough road ahead. Their sales have dropped the most of any property type, keeping their supply levels high despite a drop off in new listings.
The middle-upper price ranges found between $250,000 and $500,000 are more stable than others, seeing far less growth in inventory than other price ranges and a relatively smaller drop in buyer demand.
Massive inventory growth is taking place in the lowest price ranges, possible due to the role of sub prime foreclosure.
Foreclosures seem to be peaking in the state of Minnesota as the 2 year arms originated in 2005 are adjusting at this point causing a severe spike in payments for those folks.
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