September 2023
National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS®(NAR).
New Listings in the Twin Cities region decreased 6.4 percent to 5,663. Pending Sales were down 7.3 percent to 3,686. Inventory levels fell 9.4 percent to 8,704 units.
Prices continued to gain traction. The Median Sales Price increased 2.2 percent to $370,305. Days on Market was up 6.3 percent to 34 days. Buyers felt empowered as Months Supply of Homes for Sale was up 15.0 percent to 2.3 months.
Prices have continued to increase this fall despite softening home sales nationwide,as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
