November 2021
The economy is improving, unemployment is falling, and the U.S. real estate market
remains strong as we head into the holiday season, a period when activity typically
slows as people take time to travel, celebrate, and spend time with loved ones.
Although the market is not as frenetic as was seen earlier this year, buyer demand is
high, bolstered by attractive mortgage rates and a low supply of inventory.
New Listings in the Twin Cities region increased 1.2 percent to 4,123. Pending Sales
were up 0.8 percent to 4,740. Inventory levels fell 18.6 percent to 6,110 units.
Prices continued to gain traction. The Median Sales Price increased 9.4 percent to
$339,000. Days on Market was down 11.8 percent to 30 days. Sellers were
encouraged as Months Supply of Homes for Sale was down 21.4 percent to 1.1
months.
The most recent data from the National Association of REALTORS® reports the
median single-family existing home sales price rose 16% in the third quarter of this
year to $363,700, with all four regions of the country experiencing double-digit price
growth. In new construction, builder confidence increased in November, surpassing
analyst expectations and rising to 83 on the National Association of Home Builders
(NAHB)/Wells Fargo Housing Market Index (HMI), the highest level since spring,
despite persistent labor and supply chain challenges and a shortage of available lots.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
