May 2021
As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
New Listings in the Twin Cities region increased 2.6 percent to 7,576. Pending Sales were up 15.7 percent to 6,834. Inventory levels fell 46.9 percent to 5,687 units.
Prices continued to gain traction. The Median Sales Price increased 16.1 percent to$342,500. Days on Market was down 41.5 percent to 24 days. Sellers were encouraged as Months Supply of Homes for Sale was down 54.5 percent to 1.0months.
With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
