December 2023
U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous
month and breaking a five-month streak in which sales declined, according to the
National Association of REALTORS® (NAR). Despite the increase, sales were down
7.3% compared to the same period last year, as affordability challenges continue to
hinder prospective buyers. Most of this period’s closed sales went under contract in
October, when mortgage rates were at a two-decade high. With rates having dropped
more than a full percentage point since then, existing-home sales may continue to
pick up in the months ahead.
New Listings in the Twin Cities region increased 6.7 percent to 2,453. Pending Sales
were up 3.7 percent to 2,461. Inventory levels fell 4.9 percent to 6,270 units.
Prices continued to gain traction. The Median Sales Price increased 1.1 percent to
$352,900. Days on Market remained flat at 50 days. Buyers felt empowered as
Months Supply of Homes for Sale was up 13.3 percent to 1.7 months.
Low levels of inventory continue to impact U.S. home sales, offering few options for
aspiring buyers to choose from. Going into December there were 1.13 million units for
sale, down 1.7% from the previous month but up 0.9% from the same period last
year, for a 3.5 months’ supply at the current sales pace. As a result, sales prices
remain high nationwide, with NAR reporting the median existing-home price rose 4%
annually to $387,600 as of last measure, the fifth consecutive month of year-over-year
price gains. Homebuyer demand is picking up, and without a significant increase in
supply, experts believe home prices will likely remain elevated for some time to come.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
