March 2022

Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as
buyers struggled to find a home amid rising prices and historic low inventory. Pending
sales are also down, declining 4.1% as of last measure, according to the National
Association of REALTORS®. Builders are working hard to ramp up production—the
U.S. Census Bureau reports housing starts are up 22.3% compared to a year
ago—but higher construction costs and increasing sales prices continue to hamper

new home sales, despite high demand for additional supply.

New Listings in the Twin Cities region decreased 4.8 percent to 6,416. Pending Sales were down 9.2 percent to 5,252. Inventory levels fell 12.1 percent to 5,004 units.

Prices continued to gain traction. The Median Sales Price increased 7.5 percent to
$353,000. Days on Market was down 10.3 percent to 35 days. Sellers were
encouraged as Months Supply of Homes for Sale was down 10.0 percent to 0.9

months.

Across the country, consumers are feeling the bite of inflation and surging mortgage
interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4
percent since January and the highest rate in more than 3 years. Monthly payments
have increased significantly compared to this time last year, and as housing
affordability declines, an increasing number of would-be homebuyers are turning to
the rental market, only to face similar challenges as rental prices skyrocket and

vacancy rates remain at near-record low.

– SAINT PAUL AREA ASSOCIATION OF REALTORS®