Twin Cities Housing Market: July - 2019
The median home price in the Twin Cities hit another record high of $290K in June. With leading indicators like pending sales in decline while the overall inventory level continues to rise, June’s prices will likely turn out to have been the pinnacle for the seasonal cycle in 2019.
Mortgage Rates: After falling again in June to nearly a 3-year low and remaining there for 3 weeks in July, rates moved up last week and currently sit at 3.81% for a 30-year fixed, conventional mortgage.
Home Builder Confidence: The NAHB Housing Market Index in the United States increased to 65 in July of 2019 from 64 in the previous month, which was slightly above the market expectations of 64.
Closed Sales: 6,630 residential closings took place in the Twin Cities during June. That is up 9% month over month but down a whopping 8% year over year as overall demand continues to decelerate in the macro sense.
The Median Home Price: The median home price in the Twin Cities moved up another 2% in June to set another record high of $290,000, which up 7% year over year. That will likely be the peak of the cyclical move up for home prices in 2019.
New Listings: 8,495 new homes and condos hit the Twin Cities market in June. That is down 10% month over month and down 2% year over year.
Homes for Sale: The home and condo inventory level in the Twin Cities moved up 4% in June to over 12,000 units for sale which is almost exactly where we were at, inventory wise, this time last year. We are still down 35% from the inventory level of 5 years ago. It will be interesting to see how inventory plays out over the remainder of the year. Last year, housing inventory kept rising locally, all the way through September before it leveled off in October and then declined through the end of the year.
Pending Sales: 6,350 homes and condos came under contract in June which is down 6% month over month and down 2% year over year as overall demand continues to decelerate in the macro sense.
This concludes my housing market insight for July. 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®