August 2022
Summer 2022 has been a season of change for the U.S. real estate market. With
housing affordability at a 33-year low, existing-home sales have continued to soften
nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last
measure, according to the National Association of REALTORS® (NAR). Pending home
sales have also continued to decline, while new listings have steadily increased, with
unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in
demand has been particularly hard on homebuilders, causing new-home sales and
construction to slow.
New Listings in the Twin Cities region decreased 19.9 percent to 6,186. Pending Sales
were down 23.8 percent to 4,981. Inventory levels rose 1.3 percent to 8,552 units.
Prices continued to gain traction. The Median Sales Price increased 5.6 percent to
$369,750. Days on Market was up 18.2 percent to 26 days. Buyers felt empowered as
Months Supply of Homes for Sale was up 13.3 percent to 1.7 months.
Inflation, higher interest rates, and fears of a potential recession have taken a toll on
buyers and sellers this summer, leading many people to stay on the sidelines to see
what will happen with the market. But some experts, including NAR Chief Economist
Lawrence Yun, believe the worst of inflation may be over. Although sales prices
remain up from this time last year, price growth is expected to moderate in the
months ahead as the market continues to shift in a more buyer-friendly direction.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
