Mortgage Rates: The volatility in the bond and mortgage markets cooled off again in May as the national average for a 30 year fixed, conventional mortgage began the month and ended the month at 4.55%.
Pending Sales: 6,459 homes came under contract in May which is up 12% from April but down 7% year over year. I believe that higher mortgage rates, pinnacle prices and limited inventory are all key contributors to the reduced sales volume this year.
New Listings: New listings made a big move in May with 9,161 new listings hitting the Twin Cities market. That is up 25% from April, up 3% year over year and up 8 % from 5 years ago. Because of the late spring, we suspected that there was some lag in the market with regards to new listings and so we were expecting a catch up swing in May.
Homes for Sale: Home inventory in the Twin Cities rose to 10,151 homes for sale after an 8% rise in inventory month over month. Home inventory is still down 19% year over year and down 35% from 5 years ago. 10,151 homes for sale is a historical low for this time of year so the inventory crunch continues to dominate many of the Twin Cities market segments.
The Median Home Price: The median home price in the Twin Cities has once again broken through to a new record high of $271,000 in May. That is up 2% month over month, up 8% year over year and up 40% from 5 years ago. Although prices in most segments continue to climb, it should be notice that the rate of incline slowed to 2% in May.
That concludes my broad analysis for June. Bear in mind that each market segment has its own market conditions. Please don’t hesitate to connect with me any time to discuss your particular neighborhood or situation and thank you for taking the time to watch this video.
To schedule a free consultation, call us today at 952-222-SOLD (7653).
By Nick Leyendecker, REALTOR® with Coldwell Banker Burnet