Twin Cities Median Home Price Hits New High in June
As interest rates inched higher, more Twin Cities homebuyers were forced to press pause on their home buying journey in June. According to the Minneapolis REALTORS and the St. Paul Area Association of REALTORS buyers signed 18.4% fewer purchase agreements than last June.
Even with less buyers actively searching, the shortage of homes in the region kept prices climbing. The median home price in the Twin Cities hit another new record of $380,000 in June.
For the last few years, historically low mortgage rates have offset the impact of rising prices on monthly payments. With rates recently moving from under 3.0 percent to 5.5 percent, many buyers are simply being priced out of homeownership.
“While buyers should know that mortgage rates are still well below their long-term average, the increase in rates has had a real impact,” said Denise Mazone, President of Minneapolis Area REALTORS®. “Today’s buyers are more sensitive to that.”
The metro ended June with 8,020 homes for sale, 9.8 percent more than last June. Inventory gains have been rare in the metro, but with a mere 1.6 month’s of supply, buyers are thirsty for more choices.
“It’s reassuring to see more homes on the market after a few years of under 2.0 months of supply,” according to Mark Mason, President of the Saint Paul Area Association of REALTORS®. “That said, the gain came mostly from fewer buyers and not more sellers, so we still need more supply and more building activity to balance out the market.”
June 2022 Housing Takeaways (compared to a year ago)
Sellers listed 7,901 properties on the market, a 6.7 percent decrease from last June
Buyers signed 5,544 purchase agreements, down 18.4 percent
Inventory levels grew 9.8 percent to 8,020 units
Month’s Supply of Inventory rose 23.1 percent to 1.6 months (4-6 months is balanced)
The Median Sales Price rose 8.6 percent to $380,000
Days on Market rose 5.0 percent to 21 days, on average (median of 8 days, up 14.3 percent)
Changes in Sales activity varied by market segment
Single family sales decreased 13.8 percent; Condo sales were down 24.5 percent & townhouse sales fell 15.1 percent
Previously owned sales decreased 15.1 percent; new construction sales decreased 12.1 percent