Twin Cities Housing Market: August - 2019
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As we expected, the median home price in the Twin Cities fell in July for the first time since last December, marking the beginning of the seasonal downturn.
Mortgage Rates: After a brief move up in July, mortgage rates have been falling through the latter part of July and through August and now sit at 3.6% for the average 30-year fixed conventional mortgage which is very near the all-time low in the U.S.
Home Builder Confidence: The NAHB Housing Market Index in the United States increased slightly to 66 in August 2019 from 65 in the previous month which was slightly above market expectations of 65.
Closed Sales: 6,651 residential closings took place in the Twin Cities during July. That is flat month over month but up 5% year over year.
The Median Home Price: The median home price in the Twin Cities fell 2% in July to $283,900. That decline is the first month over month decline in home and condo/loft prices since December of 2018 and marks the beginning of the cyclical decline in prices that typically applies to closed sales from July through December. Prices are still up 6% year over year and up 33% over the past 5 years.
New Listings: 7,865 new homes and condos hit the Twin Cities market in July. That is down 8% month over month but up 2% year over year.
Homes for Sale: The home and condo inventory level in the Twin Cities fell 3% in July to 12,189 units. That is down 3% year over year and still down 38% over the past 5 years.
Pending Sales: 6,180 homes and condos came under contract in June which is down 3% month over month but up 3% year over year.
This concludes my housing market insight for August. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your neighborhood or segment and I thank you for taking the time to watch this video.
By Nick Leyendecker, Founder, Broker, REALTOR®