Twin Cities Metro Housing Market Statistics July 2018
July 2018 Snapshot – Twin Cities Housing
As we look at the data for July, we see the reason for buyers to be a bit more optimistic. Although this is still a market that favors sellers at price ranges under $500,000, we did see an increase of 4.1 percent in new listings when compared to July of last year. However, buyers should hold off popping the cork on that bottle of champagne because it is sellers that have a reason to celebrate with the median sale price up 6.6 percent over the same time last year. Pending sales were up 0.4 percent and closed transactions were flat with days on the market falling 17.4 percent and inventory levels down 13.4 percent.
Although we hear the terms “housing market bubble” and “real estate market shift” being bandied about by analysts, economic indicators may be pointing to a slowdown but not a bursting bubble. Past the middle of the year and heading into the end of summer we continue to see record low unemployment and the longest running bull market in history, in spite of trade wars and rumblings about impeachment. While we may be wise to pay attention to the former, history proves the latter will have little or no effect on stocks, housing or the economy in general.
The second quarter report on the economy showed GDP growth the strongest it has been since 2014 at 4.1 percent. Consumers are expressing their confidence by spending more. Although wage increases are not keeping up with rising housing prices, this coupled with higher interest rates are inspiring talk of more balance to the market moving into the fall. But based on what I am seeing regarding numbers for the first weeks of August, they are not consistent with a shift happening anytime soon.
Twin Cities Housing Market Predictions
Based on the increase in new listings, new construction entering the market, consumer confidence, continued low unemployment and the strong economy lead me to give a thumbs up for the housing market. Racing towards the end of summer and approaching the second best home buying season of fall, I see no balance for the housing market on the horizon, and the only bubbles I see are the ones coming from my little guy’s magic bubble machine!
Twin Cities Market data for July 2018
When we compare the numbers for July to the same time last year here is what we learn.
- new listings up +4.1%
- pending sales up 0.4%
- closed sales down 0.0%
- days on the market until closing was 38, down -17.4%
- inventory of homes for sale down -13.9%
- month’s supply of inventory down -11.1%
- median sale price up 6.6% to $268,000
- original list price received up 0.7%
- the price range that saw the highest gain in sales was the $350,001 to $500,000 up 14.1%
- property type with the largest price gain was townhomes up 8.7%
- new construction outperformed previously owned properties in pending sales up 11.0%
- the quickest selling price range was $190,001 to $250,000 at 36 days
Rolling 12 months from August 2017 through July 2018
- new listings down -4.4
- pending sales down -4.9%
- closed sales down -5.6%
- overall median sales price up 8.2%
This data represents the 16 county Minneapolis-St. Paul metro. Since real estate is hyper-local, the numbers for any particular community may be different. If you want data on any city, you can find it on the Minneapolis Association of Realtors website.
*Market data source Minneapolis Area Association of Realtors.
As always, thanks for reading. Don’t forget to check with us next month for the August analysis.