Twin Cities Housing Market Review From Top Local Realtor

There are currently numerous factors that affect the housing market. However, right now, more than anything, it is the consistent lack of homes available for buyers in the lower pricing tiers. This fact holds true both in the Twins and in most markets across the nation.

It's significant that while home values are still increasing, it is slower, more closely matching income and wage growth. While you may be frowning if you are thinking about selling your home in the future, the alignment is healthy for the market. We all knew that sharply escalating prices for homes could not continue indefinitely.

MN Housing Market Trends Have Been Consistent

While we continue to see constraints on available homes for sale at the first-time buyer level, the market is becoming more balanced as we move up to higher price ranges. So sellers are still enjoying a market that favors them under $500,000.

Meanwhile, lower interest rates are helping to continue to make housing affordable despite the rising prices. Even though new listings were up 1.8 percent over July of 2018, inventory levels in the Twin Cities fell 4.4 percent. Despite the fact, demand remains strong, with closed sales up 4.5 percent and pending sales up 3.2 percent.

Although prices are not rising as quickly and steeply, the median selling price was up 5.9 percent over July of last year and up 7 percent as a rolling...

Minneapolis-St. Paul Realtor Gives Housing Market Overview

As we look at the middle month of the spring housing market, we observe a trend towards a more balanced and sustainable real estate landscape. With the Fed holding steady on interest rates and even suggesting it may lower them, the concerns over rising costs of mortgages are behind us.

Although not growing as rapidly as in previous years, the economy is holding steady, and stocks are performing well. These factors create an atmosphere of consumer confidence in the economy, and the real estate market responds well to these conditions.

Although the inventory of homes is rising in the higher pricing tiers, supply remains constrained in the lower first-time buyer levels. The current situation is great for sellers, but it is still no bed of roses trying to break into the market and buy a home for buyers. It’s not surprising that we see fewer sales at this end of the market.

The MN Real Estate Market Ups and Downs

Comparing May of last year to the current year, new listings are up 2.4 percent. We’ll take it! The Median sales price gained 5.2 percent. At the same time, closed sales ticked up 3 percent, pending sales sunk 1.8 percent.  Homes spent less time on the market, down 4.3 percent. We also see a decline of 0.2 in the percentage of sale price received, although it is still sitting at 100 percent, which gives sellers little reason to complain....