Mortgage rates continued to rise in February and currently sit around 4.5% for a 30-Year Fixed, Conventional mortgage. Historically, 4.5% is low but compared to the past 5 years it’s high and it’s up almost 15% so far this year.
Getting into the housing market data I’ll start with home inventory. The number of homes for sale in the twin cities began a seasonal move up in February with a 7% rise to just over 7,500 homes for sale.
That slight increase in the home inventory level was mainly powered by the seasonal increase in new listings which were up about 25% month over month with just over 5,000 new homes hitting the market in February.
Pending home sales have also began a seasonal move up from 3,100 sales in January to 3,600 sales in February. Although pending sales moved up month over month, they are down 12% from February of last year with rising mortgage rates and extremely low inventory most likely playing a part in that softening.
Home prices began their seasonal move up in February with an increase in the median home price of 3% from January to $250,000. The rise was expected but a 3% move up is relatively low when compared to the Februaries of the past 7 years.
With inventory still at historical lows and with moving season on the horizon, we do expect prices to continue to move up through March, April, May and June in accordance with the historical trend.
To schedule a free consultation, call us today at 952-222-SOLD (7653).
By Nick Leyendecker, REALTOR® with Coldwell Banker Burnet