The National Association of Realtors reported the Pending Home Sales Index rose 3.2% based on contracts signed in March.

In the Twin Cities pending sales are 32% higher than last March!

Great news for a market flooded with homes offered for sale. As the quantity of homes on the market goes down, the ballance between byers and seller, supply and demand, is restored and the market will return to “normal”.

The spike in pending sales has been fuled by low interest rates, and low prices. The $8,000 inventive the Obama adminsistration created has helped motivate first time buyers. These younger buyers typically fear recession and falling home values less as there time horizon is longer, and their confidence in the market’s long term growth is high.

Sellers of more expensive homes, out if the typical first time buyer price range, are not seeing as much of an increase in activity. Long market times, and stiff competition still define the higher price points.

In each area, and price range, the market is different. In south Minneapolis it’s almost a sellers market in the $250-350k price range. The relationship between the quantity and condition of homed for sale and the number of sales determines the type of market your home is in. These factors vary greatly from price to price, area to area.