Twin Cities Region
Overall Recap: With interest rates bouncing up to the highest rates we have seen in a few years, the housing market began to level itself out. Homes are taking longer to sell and there are less active buyers in the market. Sales prices are still increasing however because there is a limited amount of inventory available.
The data listed is from the NorthstarMLS and focuses on the Twin Cities 16-county region. If you are interested in a more in-depth analysis of your area or neighborhood, please feel free to reach out. I'll be happy to provide your local data.
Sales prices grew another 6.3% year over year. Professionals expect prices to continue to grow into the future, but at slower rates than the previous 2 years. This is a signifier of a market correction vs a market crash.
New listing are down 17.4% from 2021, which is why we are still seeing a Seller's Market even with higher interest rates.
Days on market have increased, which is a sign to both buyers and sellers that the housing market is taking a smidge more time to move. Buyers now have the opportunity to tour a home more than once before making a final offer decision.
Mortgage rates increased, which unfortunately reduces overall buying power. However, it has cooled the market demand which impacts the bidding prices that buyers are offering over asking. Percentages listed are the average rate for the months of September.
0-5 months = SELLERS MARKET
5-7 months = BALANCED MARKET
7+ months = BUYERS MARKET
My favorite market indicator as a realtor is the months supply. This indicator shows the balance between a Sellers Market and a Buyers Market. To reach this statistic, professionals calculate how long it would take all the current homes on the market to sell if no new homes were listed and no new buyers entered the market.
The market has balanced a little more since last year, but it is still a VERY strong Sellers Market.
now that you know what's happening in the LOCAL market...
Now that you know what is happening in the market supported by local data, you may be interested in starting your home search. Feel free to start a No-Obligation Search here.