May 2023
Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23%compared to the same period a year ago, while contract signings dropped 20.3% year over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally,although more affordable markets continue to see price gains.
New Listings in the Twin Cities region decreased 17.6 percent to 6,645. Pending Sales were down 19.3 percent to 4,901. Inventory levels fell 9.0 percent to 6,864 units.
Prices were fairly stable. The Median Sales Price decreased 1.3 percent to $370,000.Days on Market was up 65.2 percent to 38 days. Buyers felt empowered as Months Supply of Homes for Sale was up 28.6 percent to 1.8 months.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, ascurrent homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market,according to NAR.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
