Twin Cities Housing Market: January - 2020
Home inventory continued its predictable slide in December and hit a new record low as inventory continued to consolidate ahead of the upcoming spring market.
Mortgage Rates: Mortgage rates in the US fell almost 7% in December and currently sit at 3.5% 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: We had 4,273 residential closings take place during December. That is down 10% month over month as expected and is up 13% year over year.
The Median Home Price: The Twin Cities’ median home price fell slightly for closed sales in December at $278,600. That is up 8% year over year and up 38% over 5 years.
New Listings: As expected, new listings fell sharply again in December as only 2,529 homes and condo listing hit the Twin Cities’ market. That is down 37% month over month but up 4% year over year.
Homes for Sale: As expected, the home inventory level in the Twin Cities continued to fall sharply in December to a new record low of 7,565 units. That is down 27% month over month, down 18% year over year and down 44% over the past 5 years.
Pending Sales: As expected, pending sales fell sharply again in December to 3,189 units. That is down 22% month over month but is still up 9% year over year.
This concludes my housing market insight for the month of January. 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®