Existing home sales declined nationwide for the eighth consecutive month, falling 1.5%
as of last measure, according to the National Association of REALTORS® (NAR), with
sales down nearly 24% from the same period last year. Pending home sales also
declined, dropping 10.9% month-to-month, exceeding economists’ expectations.
Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing
power and have caused the market to cool rapidly this year.
An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
New Listings in the Twin Cities region decreased 19.7 percent to 5,019. Pending Sales
were down 37.7 percent to 3,611. Inventory levels rose 5.1 percent to 8,756 units.
Prices continued to gain traction. The Median Sales Price increased 4.7 percent to
$356,002. Days on Market was up 33.3 percent to 36 days. Buyers felt empowered as
Months Supply of Homes for Sale was up 26.7 percent to 1.9 months.
The US housing market is undergoing a major shift, and affordability continues to be an
obstacle for buyers and sellers. Mortgage rates have doubled since March, and home
prices remain elevated due to a limited supply of homes, although price gains are
slowing at a quickening pace. As a result, many homeowners are waiting until market
conditions improve to sell their home, while other sellers are increasingly cutting prices
and offering concessions to attract a greater number of buyers.