October 2023

U.S. sales of existing homes recently fell to a 13-year low, dropping 2.0% month-over-month and 15.4% year-over-year as of last measure, according to the National Association of REALTORS® (NAR), as surging interest rates and elevated sales prices continue to make homeownership unaffordable for many prospective buyers. Purchase activity is down significantly compared to this time last year, but rising interest rates are also keeping many current homeowners from selling, causing inventory to remain at historically low levels nationwide.

New Listings in the Twin Cities region decreased 1.1 percent to 5,014. Pending Sales were down 4.9 percent to 3,470. Inventory levels fell 7.7 percent to 8,630 units.

Prices continued to gain traction. The Median Sales Price increased 2.4 percent to $365,000. Days on Market was up 2.8 percent to 37 days. Buyers felt empowered as Months Supply of Homes for Sale was up 15.0 percent to 2.3 months.

Total housing inventory going into October was at 1.13 million units, up 2.7% from the previous month but down 8.1% compared to the same time last year, for a 3.4months’ supply at the current sales pace, according to NAR. The shortage of homes for sale is making it harder for buyers to find a home to purchase while at the sametime pushing sales prices higher nationwide, with the median existing-home sales price rising 2.8% annually to $394,300, the third consecutive month of year-over-year price increases.