Twin Cities Housing Market: January - 2019
Mortgage Rates: Mortgage rates continued to fall and currently sit at a 9 month low of 4.45% for a 30 year fixed, conventional mortgage.
The Federal Reserve has done an about face as their sentiment has quickly shifted to a more dovish tone for interest rate policy in 2019 in the face of what appears to be the beginning a global, economic slowdown. The People’s Bank of China also appears to be reacting to that information as on January 15th, they launched a record liquidity injection into their economy equal to $83 billion US dollars. Both of the above mentioned actions signal a suppression of long term interest rates by central banks and governments, at least into the near future.
Home Builder Confidence: In January, the home builder confidence index received a small boost of 3.5% from 56 to 58.
Closed Sales: Closed sales in the Twin Cities fell 21% in December to a four year low of 3,725 closings. December is the Twin Cities’ slowest month so a decline was expected but closed sales were down 9% from December of last year.
New Listings: New listings fell 40% in December with 2,401 homes and condos hitting the market. That decline was expected and new listings were up 4% from December of last year.
Homes for Sale: The home inventory level in the Twin Cities fell 20% in December leaving 8,256 homes for sale. That is up 20% from December of last year but is still extremely low, historically and appears to be setting the stage for another move up in home prices when demand cyclically rises in the spring.
Median Home Price: The median home price in the Twin Cities fell 3% in December to $258,000 but is still up 4% year over year.
Pending Sales: Pending sales fell 25% in December with 2,933 homes coming under contract. A monthly decline like that was expected but pending sales were down 4% from December of 2018. That is the first time pending sales in the Twin Cities have fallen below 3,000 in any given month since 2014.
This concludes my insight for January. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your particular neighborhood or price bracket and thank you for taking the time to watch this video.
By Nick Leyendecker, Founder, Broker, REALTOR®