October 2022

Existing home sales declined nationwide for the eighth consecutive month, falling
1.5% as of last measure, according to the National Association of REALTORS®
(NAR), with sales down nearly 24% from the same period last year. Pending home
sales also declined, dropping 10.9% month-to-month, exceeding economists’
expectations. Stubbornly high inflation and soaring borrowing costs have eroded

buyer purchasing power and have caused the market to cool rapidly this year.

New Listings in the Twin Cities region decreased 19.7 percent to 5,019. Pending Sales

were down 37.7 percent to 3,611. Inventory levels rose 5.1 percent to 8,756 units.

Prices continued to gain traction. The Median Sales Price increased 4.7 percent to
$356,002. Days on Market was up 33.3 percent to 36 days. Buyers felt empowered as

Months Supply of Homes for Sale was up 26.7 percent to 1.9 months.

The US housing market is undergoing a major shift, and affordability continues to be
an obstacle for buyers and sellers. Mortgage rates have doubled since March, and
home prices remain elevated due to a limited supply of homes, although price gains
are slowing at a quickening pace. As a result, many homeowners are waiting until
market conditions improve to sell their home, while other sellers are increasingly

cutting prices and offering concessions to attract a greater number of buyers.

– SAINT PAUL AREA ASSOCIATION OF REALTORS®