January 2022
The 2022 real estate market begins where 2021 left off, in which existing home sales
reached their highest level since 2006, with the National Association of REALTORS®
reporting sales were up 8.5% compared to the previous year as homebuyers rushed
to take advantage of historically low mortgage rates. Home sales would’ve been even
greater were it not for soaring sales prices and a shortage of homes for sale in many
markets, forcing a multitude of buyers to temporarily put their home purchase plans
on hold.
New Listings in the Twin Cities region decreased 11.5 percent to 3,605. Pending Sales
were down 11.7 percent to 3,170. Inventory levels fell 24.2 percent to 4,221 units.
Prices continued to gain traction. The Median Sales Price increased 10.4 percent to
$332,250. Days on Market was down 2.4 percent to 41 days. Sellers were encouraged
as Months Supply of Homes for Sale was down 20.0 percent to 0.8 months.
For many buyers, 2022 marks a new opportunity to make their home purchase
dreams a reality. But it won’t be without its challenges. Inventory of existing homes
was at 910,000 at the start of the new year, the lowest level recorded since 1999,
according to the National Association of REALTORS®, and competition remains
fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging
mortgage interest rates reduce purchasing power. The sudden increase in rates and
home prices means buyers are paying significantly more per month compared to this
time last year, which may cause sales to slow as more buyers become priced out of
the market.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
