Twin Cities Housing Market: June - 2019
Pending sales hit what is likely to be their peak for 2019 in May, but new listings hit a 9-year high, as home sellers rushed to strike while the iron was hot and take advantage of record home and condo/loft prices.
Mortgage Rates: Mortgage rates fell about 10% in May and have remained flat so far in June. The rate currently sits at 3.84% for a 30-year fixed conventional mortgage which is close to a 2-year low.
Home Builder Confidence: The NAHB Housing Market Index in the United States fell to 64 in June from a seven-month high of 66 in the previous month, but missing market expectations of a rise to 67.
Closed Sales: 6,005 residential closings took place in the Twin Cities during May. That is up 36% month over month and up 3% year over year.
The Median Home Price: The median home price in the Twin Cities moved up another 1% in May to set another record high of $285,000. This trend should continue for sales that close in June before the trend reverses in July as the market tends to soften during the “summer slowdown”.
New Listings: 9,402 new homes and condos hit the Twin Cities market in May. That is up 22% month over month, up 2% year over year and is the highest number of monthly listings in any given month since April of 2010.
Homes for Sale: The home and condo inventory level in the Twin Cities moved up 11% in May to 11,364 units for sale. It will be interesting to see how the inventory plays out over the remainder of the year. Last year, inventory kept rising all the way through September before it leveled off in October.
Pending Sales: 6,654 homes and condos came under contract in May which is up 15% month over month but flat, year over year.
This concludes my housing market insight for June. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your neighborhood or price bracket and thank you for taking the time to watch this video.
By Nick Leyendecker, Founder, Broker, REALTOR®