Twin Cities Housing Market: February - 2020
The home inventory level in the Twin Cities has fallen to a new record low ahead of the spring market, which is just beginning. 2020 is now on track to be the 9th consecutive year with rising home prices making this one of the longest lasting and most aggressive bull markets for housing in US history. The median home price in the Twin Cities has risen more than 97% since the lows of 2012. And the Federal Reserve says that inflation is "too low". 😉
Mortgage Rates: Mortgage rates in the US have been falling since mid-December and currently sit at 3.45% for the average 30-year fixed conventional mortgage.
Home Builder Confidence: The NAHB Housing Market Index in the United States fell to 75 in January of 2020 from an over 20-year high of 76 in the previous month, matching market expectations.
Closed Sales: As expected, closed sales fell dramatically in January with only 2,878 residential sales having closed. That is down 33% month over month and is up 6% year over year.
The Median Home Price: The median home price fell 3% in January to a 12-month low of $270,000. That is up 4% year over year, up 39% over 5 years and up 100% from the the low in February of 2012.
New Listings: As expected, the trend of new listings bottomed out in December and began a seasonal move up in January with 4,337 new home and condo listings. That is up 71% month over month but down 2% year over year.
Homes for Sale: The home inventory level fell slightly in January to a new record low of 7,676 units. That is down 3% month over month, down 14% year over year and is the lowest Twin Cities’ home inventory level in recorded history.
Pending Sales: As expected, the trend for pending bottomed out in December and began a seasonal move up in January 3,314 units contracted. That is up 3% month over month and up 2% year over year.
This concludes my housing market insight for the month of February. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your specific community or market segment and I thank you for taking the time to watch this video.
By Nick Leyendecker, Founder | Broker | REALTOR®