Mortgage Rates: The volatility in the bond and mortgage markets returned in April as the national average for a 30 year fixed conventional mortgage rose from 4.4% to about 4.6%.
Homes for Sale: I also touched on this last month but number of homes for sale typically rises significantly during the spring months to meet the seasonal increase in demand however this April ended with home inventory up only 3% from March leaving a total of 8,876 homes for sale in the Twin Cities. That is down 25% year over year and down almost 40% from April of 2013.
New Listings: 7,056 new listings hit the Twin Cities market in April which is up 5% from March but down 11% year over year.
Pending Sales: 5,506 homes came under contract in April which is up 6% from March but down 10% year over year and up only 2% from 5 years ago.
Median Home Prices: The median home price in the Twin Cities has broken through to a new record high of $267,500 in April. That is up 4% month over month, up 9% year over year and up 47% from 5 years ago.
General Analysis: In most segments across the Twin Cities, especially in the lower and median brackets, inventory is constricted and prices are on the rise. Because much of the current boom in prices is primarily fueled by a lack of inventory rather than by an increase in sales volume, rising prices in this cycle are vulnerable to inventory swings. In some upper bracket segments with surrounding re-development and in segments that are directly competing with speculative new construction inventory, we are experiencing some downward pressure on home prices.
To schedule a free consultation, call us today at 952-222-SOLD (7653).
By Nick Leyendecker, REALTOR® with Coldwell Banker Burnet