June Housing Market Overview

Prices Rebound in Full Swing as Sales Declines Ease; Sellers Slow to Catch Up!

Data provided by MINNEAPOLIS AREA REALTORS®

Hey there! We've got some exciting news to share from the housing market! Drumroll, please! 🥁 It looks like the median sales price went up by 1% percent from last June, reaching a $386,250 (7 County Twin Cities Region).

Now, hold onto your hats because we have more tidbits to reveal. Signed purchase agreements took a little dip, falling by 10.8 percent, and new listings were down by 16.5 percent. But guess what? Sellers accepted offers that were a whopping 101.3 percent of their asking price! It seems like buyers are really eager to get their hands on these amazing homes.

According to the latest data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, home prices in June made a delightful comeback. After a slight decline in April and May, prices bounced back with a 0.5 percent increase.

Did you know that half of all homes sold for more than $382,000? Even with a decline in sales, sellers in June were still saying "yes" to offers above their list price. This situation reflects the limited supply of homes in the market, despite rising mortgage rates. Don't worry, though, the market is still moving at a fast pace. In fact, half of the sales were under contract in less than 12 days.

Our optimistic outlook continues as we compare the current market to previous years. Homes are still selling faster than they did in June 2018, 2019, and 2020. So, all those worries about a housing crash? Not happening! Brianne Lawrence, the President of the Saint Paul Area Association of REALTORS®, says, "We're still not seeing it!"

Of course, we can't ignore the Fed-driven decline in demand, which has persisted. However, when we look at the slower months of 2022, the sales declines have definitely improved. Pending sales took a dip of 10.8 percent, and closed sales fell by 18.0 percent.

Let's talk listings and inventory, shall we? June saw sellers bringing 16.5 percent fewer new listings to the market compared to last year. It seems like some sellers are choosing to sit tight and wait for better prices. And who can blame them? Most sellers are also buyers themselves, and they're not eager to give up their fantastic 3.0 percent interest rates for higher ones.

Both supply and demand have come down in tandem, meaning there's still a tight balance between buyer and seller activity. Inventory levels fell by 13.4 percent in June, leaving us with 7,492 active listings. The market still favors sellers, but not as strongly as it did in the past few years. We currently have a 2.0 months supply of inventory, which is up by 17.6 percent. Typically, it takes 4-6 months of supply to achieve a balanced market. So, we're still NOT at a balanced buyer and seller market.

Location and property type play a role too! Market activity varies depending on the area, price point, and property type. Excitingly, new home sales jumped up by a fantastic 24.3 percent, while existing home sales experienced a slight decline of 12.8 percent. Single-family sales fell by 13.7 percent, condo sales took a dip of 3.2 percent, and townhome sales saw a delightful increase of 0.8 percent.

When we dive into it regionally, sales in Minneapolis decreased by 12.1 percent, while our fabulous neighbors in Saint Paul experienced a decline of 12.9 percent. But there's good news too. Cities like Annandale, Shorewood, White Bear Township, and Delano had some pretty impressive sales gains. On the flip side, White Bear Lake, New Hope, New Prague, Zimmerman, and Hudson saw a bit of a slowdown compared to last year. It's a mixed bag out there.

Now, let's quickly glance at some housing takeaways from June 2022 compared to a year ago. Sellers listed 16.5 percent fewer properties on the market, while buyers signed 10.8 percent fewer purchase agreements. Inventory levels shrank by 13.4 percent, leaving us with 7,492 units. Our Months Supply of Inventory rose by a cheerful 17.6 percent to 2.0 months, which is still in favor of sellers. And hey, the Median Sales Price went up by 1 percent to $386,250 for the 7 County Twin Cities Region.

Phew, that was a lot of info, but we made it through! Just remember, the housing market may have its ups and downs, and with the constant changes and scary headlines, feel free to reach out anytime if you ever have any questions. Cheers! 🏡🥂