August 25, 2022
The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market. Home sales continue to decline, prices are moderating, and consumer confidence is low. But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market.
Information provided by Freddie Mac.
After declining for three consecutive quarters, the share of homebuyers actively searching for a home grew to 49% nationally in the second quarter of 2022, up from 46% the previous quarter, according to the National Association of Home Builders (NAHB) recent Housing Trends Report. NAHB economists credit the rise in buyer activity to a less competitive housing market, which has motivated more prospective buyers to advance from the planning stage of the homebuying process to actively trying to purchase a home.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING AUGUST 13:
- New Listings decreased 16.0% to 1,480
- Pending Sales decreased 22.6% to 1,173
- Inventory increased 5.4% to 8,948
FOR THE MONTH OF JULY:
- Median Sales Price increased 7.1% to $375,000
- Days on Market increased 15.8% to 22
- Percent of Original List Price Received decreased 2.0% to 101.5%
- Months Supply of Homes For Sale increased 20.0% to 1.8
All comparisons are to 2021