Twin Cities Housing Market: December - 2019
The Twin Cities housing market has continued to trend in line with historically set, seasonal expectations. In November, the median price for closed sales remained flat while new sales volume, new listing volume and the overall inventory level all fell sharply. Home prices will likely continue to fall for sales contracted in December and January before prices likely stabilize in February and begin their seasonal upward trend.
Mortgage Rates: Mortgage rates in the US inched up slightly in December and currently sit at 3.73% for the average 30 year fixed conventional mortgage.
Home Builder Confidence: The NAHB Housing Market Index in the U.S. jumped to 76 in December of 2019, way above market expectations of 70 and the highest reading since June of 1999.
Closed Sales: We had 4,710 residential closings take place during November. That is down 13% over month as expected and is flat year over year.
The Median Home Price: The Twin Cities’ median home price remained flat as expected for closed sales in November at $280,000. That is up 5% year over year and up 38% over 5 years.
New Listings: New listings fell sharply in November as only 3,981 new homes and condos hit the Twin Cities’ market. That is down 37% month over month and down 1% year over year.
Homes for Sale: The home inventory level in the Twin Cities also fell sharply in November to just over 10,000 units. 10,120 units to be exact which is down 16% month over month and down 8% year over year.
Pending Sales: As expected, pending units also fell sharply in November with 4,079 sales. That is down 21% month over month but still up 4% year over year.
This concludes my housing market insight for the month of December. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your specific community or market segment and I thank you for taking the time to watch this video.
By Nick Leyendecker, Founder | Broker | REALTOR®