Twin Cities Housing Market: March - 2019
The competitive spring housing market has arrived in the Greater Twin Cities. The home inventory crisis that has been at the core of the inflationary boom in housing prices for the past 7 consecutive years, remains fully intact. The February blizzards kept new listing inventory at bay but with mortgage rates at a 13-month low, the weather seems to have had very little effect on the seasonal rise in buyer demand. Except for segments with direct competition from new construction inventory, multiple offer scenarios for a majority of property listings has returned as the status quo for local home buyers and sellers and that will remain the case for the next 2-3 months.
Mortgage Rates: Mortgage rates have fallen further in March and now sit at a 13-month low of 4.31% for a 30-year fixed, conventional mortgage.
Home Builder Confidence: In February, the national home builder confidence index remained unchanged at 62.
Closed Sales: Closed sales in the Twin Cities climbed 4% in February with 2,815 residential closings.
The Median Home Price: The median home price in the Twin Cities moved up 3% in February to $265,500. We expect that figure to continue to rise for closed sales through the month of June.
New Listings: New listings are typically on the rise in February, but we had the highest snowfall on record in Minnesota for February this year. The weather appears to have put a damper on plans for many would be home sellers as new listings fell 1% month over month, in February compared to what would normally be a 10 – 15% increase. We are expecting a significant bounce back for new listings in March.
Homes for Sale: The home inventory level in the Twin Cities is typically rising in February to meet the seasonal rise in demand however the home inventory level fell 3% this February to 8,053 homes for sale. That figure doesn’t include some of the unlisted new construction inventory but even considering that fact, 8,000 homes for sale is very close to a historical low, adjusted for population.
Pending Sales: Despite the low inventory level and despite the snowy weather, pending sales in the Twin Cities climbed 5% in February to 3,424 units. We expect pending sales volume to continue to rise significantly from now through May as the weather improves and new listings begin to catch up with demand.
This concludes my insight for March. 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®