Navigating the Current Real Estate Market: What You Need to Know

Summer homebuying has been a challenge this year. Elevated mortgage rates, which crossed the 6.5% mark in May, coupled with soaring home prices and inventory shortages, have put a dent in market activity. Existing home sales are down 16.6% compared to last year, according to NAR.

In the Twin Cities, the scenario is similar. New listings dropped 2.8% to 6,077, while pending sales were down 10.5% to 4,468. Inventory levels decreased by 11.8% to 8,111 units. Despite these figures, median sales prices still rose by 2.7% to $380,000, and homes stayed on the market for an average of 32 days—up 18.5%. Buyers now have a 2.2-month supply to consider, up 15.8% from last year.

What does this mean for you? If you're a buyer, competition is fierce. However, an extended ‘Days on Market’ indicates you may have some room to negotiate. Sellers, don’t let the slower sales pace discourage you; prices are still on the rise thanks to the limited housing supply.

As always, your real estate decisions should be tailored to your individual circumstances, keeping an eye on long-term goals. As an experienced real estate professional, I’m here to guide you through the complexities of today's market, always adhering to fair housing laws.