November 2023
Low inventory, elevated sales prices, and decades-high interest rates continue to weigh on the housing market, causing sales of existing homes to fall to their slowest pace since August 2010. According to the National Association of REALTORS®(NAR), U.S. existing-home sales declined 4.1% month-over-month and 14.6% year over-year as of last measure, as prospective buyers, faced with rising homeownership costs, wait for mortgage rates, and home prices, to drop.
New Listings in the Twin Cities region increased 5.3 percent to 3,657. Pending Saleswere down 1.5 percent to 2,807. Inventory levels fell 5.1 percent to 7,819 units.
Prices continued to gain traction. The Median Sales Price increased 2.0 percent to$362,000. Days on Market remained flat at 40 days. Buyers felt empowered asMonths Supply of Homes for Sale was up 10.5 percent to 2.1 months.
Inventory remains at historically low levels nationwide, with only 1.15 million homes for sale heading into November, a 5.7% decline compared to the same time last year, for a 3.6 months’ supply at the current sales pace. The shortage of available properties for sale has kept pressure on home prices, which have continued to climb despite the slowdown in sales. According to NAR, the U.S. median existing-home sales price increased 3.4% from a year ago to $391,800, an all-time high for the month, with annual price gains reported in all four regions of the country.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
