Market Trends

Stats From May

After two years of record-setting activity, there are signs the housing market might be
cooling. High home prices and a surge in mortgage interest rates are slowing buyer
activity, with home sales declining for the third consecutive month under the weight of
soaring homeownership costs. The National Association of REALTORS® (NAR)
reports existing home sales were down 2.4% from the previous month, while pending
sales fell 3.9% as of last measure, extending the trend of recent months. Economists
predict sales will continue to soften in the near future, which may put downward
pressure on home prices.
New Listings in the Twin Cities region increased 3.2 percent to 7,930. Pending Sales
were down 11.8 percent to 6,076. Inventory levels rose 5.3 percent to 6,797 units.
Prices continued to gain traction. The Median Sales Price increased 9.0 percent to
$375,000. Days on Market was down 4.2 percent to 23 days. Buyers felt empowered
as Months Supply of Homes for Sale was up 18.2 percent to 1.3 months.
The slowdown in sales has provided a much-needed lift to housing supply, with
inventory up 10.8% from the previous month according to NAR, although supply
remains down 10.4% compared to this time last year, with only 2.2 months’ supply of
homes at the current sales pace. As the nation continues to explore ways to solve the
ongoing housing shortage, estimated at 5.5 million homes, the Biden administration
recently unveiled the Housing Supply Action Plan, which aims to expand housing
access through a number of administrative and legislative actions and help relieve the
nation’s housing crisis over the next 5 years.