November 2019

In November, the Federal Reserve reduced its benchmark rate for the third time this year. This action was widely anticipated by the market. Mortgage rates have remained steady this month and are still down more than 1 percent from last year at this time. Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units.

New Listings in the Twin Cities region decreased 1.3 percent to 3,970. Pending Sales were up 2.8 percent to 4,034. Inventory levels fell 9.2 percent to 10,011 units.

Prices continued to gain traction. The Median Sales Price increased 5.6 percent to $279,900. Days on Market was down 1.9 percent to 51 days. Sellers were encouraged as Months Supply of Homes for Sale was down 9.1 percent to 2.0 months.

While many economic signs are quite strong, total household debt has been rising for twenty-one consecutive quarters and is now $1.3 trillion higher than the previous peak

of $12.68 trillion in 2008. While delinquency rates remain low across most debt types (including mortgages), higher consumer debt loads can limit future household spending capability and increase risk if the economy slows down.

– SAINT PAUL AREA ASSOCIATION OF REALTORS®