Jeff Byrd

A recent post n the Minneapolis Association of REALTORS blog "The Skinny" included a comment that "Thankfully new supply was not growing".  I would have to disagree that the new supply not growing is a good thing. The lower number of new listings coming on the market means the listing inventory is getting stale.  In a market with stagnant or declining values, properties are like bread on the shelf at the store, they become stale the longer they sit on the market without price adjustments. No matter how few homes are on the market, buyers are not buying overpriced listings that have been on the market for a long time.  Without rising values, properties that sit on the market for a long time can’t just wait for the values to rise.  Quite the contrary, the longer they are on the market the more likely they are to have their value decrease.  New "market priced" listings are what will drive sales.  The increase in the percentage of distressed sales (Foreclosures & Short Sales), reflects this reality.  An increase in new listings in this market may indeed be a good thing for sales.  Rates are great, values are great, making it a great time to buy. Buyers are well equipped with information and are very savvy today.  Put new well priced inventory out there and they will buy.