Twin Cities Housing Market: May - 2019
As the competitive spring housing market has evolved, Twin Cities home prices have continued their predictable rise.
Mortgage Rates: Mortgage rates moved up in April but fell back down in May and currently sit right around 4% for a 30-year fixed conventional mortgage.
Home Builder Confidence: In May, the home builder confidence index inched up from 63 to 66 but remains down year over year as it was at 72, this time last year.
Closed Sales: 4,406 residential closings took place in the Twin Cities during April. That is up 19% month over month but is down 6% year over year.
The Median Home Price: The median home price in the Twin Cities moved up another 2% in April to a new record high of $280,800. This trend should continue for closed sales through May and June before it levels off in July.
New Listings: Not including what I call “new construction shadow inventory” which are essentially new lots and condos that builders have developed to sell into, 7,699 new homes and condos hit the Twin Cities market in April. That is up 41% month over month and up 5% from April of last year.
Homes for Sale: The home inventory level in the Twin Cities moved up 7% in April to just under 10,000 homes for sale. It will be interesting to see how the inventory plays out over the summer. Last year, inventory kept rising all the way through September before it leveled off in October.
Pending Sales: 5,721 homes and condos came under contract in April which is up 24% month over month but down 1% year over year. So in the mirco, sales continued their predicable seasonal incline but in the macro the market has continued to decelerate.
This concludes my insight for May. 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®