Elevated mortgage rates continue to take a toll on the construction industry, with housing permits for new homes falling 11.2% in November, according to the Commerce Department. Housing starts were down 0.5% over the same time period, with the annual rate of housing starts down 16.4% from the previous year. Overall construction was strongest in the West and the South, while single-family construction was strongest in the West and Northeast.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 24:
- New Listings decreased 5.6% to 303
- Pending Sales decreased 20.8% to 449
- Inventory increased 18.8% to 6,881
FOR THE MONTH OF NOVEMBER:
- Median Sales Price increased 4.1% to $354,000
- Days on Market increased 33.3% to 40
- Percent of Original List Price Received decreased 2.6% to 97.2%
- Months Supply of Homes For Sale increased 50.0% to 1.8
All comparisons are to 2021
December 29, 2022
The housing market remains in the doldrums with declining sales, inventory and prices. The declines in sales and deceleration in home prices began swiftly earlier in 2022 but have moderated more recently. While the intensity of weakness is moderating, the market continues to decline and forward leading indicators suggest housing will remain weak throughout the winter.
Information provided by Freddie Mac.