Skyrocketing rents and surging homeownership costs are forcing many prospective buyers to remain in the rental market. With the national median existing-home price recently exceeding $400,000, and assuming a down payment of 3.5%, buyers would need to come up with $14,000 down toward the typical median-priced home. That’s a significant challenge for millions of renters, whom have a median savings of $1,500 or less, according to Harvard researchers’ State of the Nation’s Housing 2022 report.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 25:

• New Listings decreased 4.5% to 1,825
• Pending Sales decreased 25.0% to 1,221
• Inventory increased 6.8% to 7,974

FOR THE MONTH OF MAY:

• Median Sales Price increased 9.0% to $375,000
• Days on Market decreased 4.2% to 23
• Percent of Original List Price Received increased 0.1% to 104.1%
• Months Supply of Homes For Sale increased 27.3% to 1.4

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

The 30-year fixed rate mortgage averaged 5.78% the week ending 6/17, rising 55 basis points from the previous week and marking the largest one week increase since 1987, according to Freddie Mac. Mortgage rates are nearly double compared to this time last year, with rates spiking following the Federal Reserve’s recent decision to raise the benchmark interest rate by three quarters of a percentage point in order to help quash rising inflation.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 18:

• New Listings decreased 14.6% to 1,825
• Pending Sales decreased 11.6% to 1,377
• Inventory increased 7.8% to 7,687

FOR THE MONTH OF MAY:

• Median Sales Price increased 9.0% to $375,000
• Days on Market decreased 4.2% to 23
• Percent of Original List Price Received increased 0.1% to 104.1%
• Months Supply of Homes For Sale increased 27.3% to 1.4

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

To help fight rising inflation, which hit 8.6% as of last measure, the Federal Reserve raised interest rates by three quarters of a percentage point, the largest interest rate hike in 28 years. The U.S. central bank will boost its short-term policy rate to 1.50% – 1.75%, increasing consumer borrowing costs on everything from credit cards to car loans. This marks the third rate increase this year, with the Fed planning additional rate increases throughout the year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 11:

• New Listings decreased 7.7% to 1,820
• Pending Sales decreased 14.6% to 1,308
• Inventory increased 11.7% to 7,429

FOR THE MONTH OF MAY:

• Median Sales Price increased 9.0% to $375,000
• Days on Market decreased 4.2% to 23
• Percent of Original List Price Received increased 0.1% to 104.1%
• Months Supply of Homes For Sale increased 27.3% to 1.4

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

The slowdown in the U.S. housing market is causing lumber prices to plummet. Nationally, lumber prices fell 12% the week ending June 3 and are down 47% year-to-date, representing a 65% decline from 2021’s record high of $1,733 per thousand board feet, according to the National Association of Home Builders (NAHB). That could be good news for prospective homebuyers, who have watched lumber prices skyrocket during the pandemic, adding more than $18,600 to the average price of a new single-family home in the past year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 4:

• New Listings decreased 2.1% to 1,772
• Pending Sales decreased 13.7% to 1,077
• Inventory increased 7.9% to 6,968

FOR THE MONTH OF APRIL:

• Median Sales Price increased 10.0% to $370,000
• Days on Market decreased 9.7% to 28
• Percent of Original List Price Received increased 0.5% to 103.8%
• Months Supply of Homes For Sale increased 9.1% to 1.2

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Nationally, home sales and contract signings continue to soften compared to last year’s pace, while sellers are working quickly to list their homes and cash in on the remaining buyer demand. Realtor.com reports new listings are growing nearly twice as fast nationwide in May compared to this time a year ago, leading to a greater availability of homes for sale. As inventory inches upward and competition eases, sellers are having to adjust to the shifting landscape, with an increase in price reductions reported across many markets.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 28:

• New Listings increased 0.1% at 1,608
• Pending Sales decreased 15.4% to 1,451
• Inventory increased 4.6% to 6,772

FOR THE MONTH OF APRIL:

• Median Sales Price increased 10.0% to $370,000
• Days on Market decreased 9.7% to 28
• Percent of Original List Price Received increased 0.5% to 103.8%
• Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Rental prices continue to soar to new highs, with the median rent reaching $1,827 as of last measure, a 16.7% increase from the same time last year, according to Realtor.com. Rental units are in short supply and demand remains high, with real estate professionals reporting a surge in rental inquiries, applications, and showing activity across the nation. Bidding wars are becoming increasingly common in many rental home markets, causing some properties to rent for substantially over asking price.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 21:

• New Listings increased 3.4% to 2,008
• Pending Sales decreased 8.7% to 1,490
• Inventory increased 2.9% to 6,626

FOR THE MONTH OF APRIL:

• Median Sales Price increased 10.0% to $370,000
• Days on Market decreased 9.7% to 28
• Percent of Original List Price Received increased 0.5% to 103.8%
• Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

With home prices and mortgage rates continuing to rise, down payments are increasing nationwide, as buyers aim to lower their monthly mortgage costs and make their offer more attractive to sellers. According to Realtor.com, buyers averaged a $28,000 down payment in the first quarter of 2022, averaging 13.1% of the purchase price, compared to the first quarter of 2020, when down payments averaged $14,000, with buyers paying about 11% of the purchase price.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 14:

• New Listings decreased 6.2% to 1,875
• Pending Sales decreased 19.3% to 1,280
• Inventory decreased 2.9% to 6,152

FOR THE MONTH OF APRIL:

• Median Sales Price increased 10.0% to $370,000
• Days on Market decreased 9.7% to 28
• Percent of Original List Price Received increased 0.5% to 103.8%
• Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Demand for adjustable-rate mortgages (ARMs) is rising, as buyers look to mitigate higher monthly payments caused by record-high sales prices and surging mortgage interest rates. Although less popular than fixed rate mortgages, ARMs offer introductory rates lower than rates from conventional mortgages and currently represent 11% of mortgage loans, up from 3% at the beginning of the year, according to the Mortgage Bankers Association.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 7:

• New Listings decreased 5.7% to 1,808
• Pending Sales decreased 11.6% to 1,406
• Inventory decreased 5.2% to 5,811

FOR THE MONTH OF APRIL:

• Median Sales Price increased 10.0% to $370,000
• Days on Market decreased 9.7% to 28
• Percent of Original List Price Received increased 0.5% to 103.8%
• Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

70% of metropolitan areas saw the median existing-home sales price rise by double digits annually in the first quarter of 2022, up from 66% of metro areas in the previous quarter, according to the National Association of REALTORS® (NAR) latest quarterly report. In 27 U.S. markets, buyers needed at least $100,000 annual income to afford a 10% down payment, with first time buyers typically spending 28.4% of monthly income on mortgage payments, exceeding the 25% threshold NAR considers unaffordable.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING APRIL 30:

• New Listings decreased 4.8% to 1,731
• Pending Sales decreased 9.3% to 1,424
• Inventory decreased 6.9% to 5,576

FOR THE MONTH OF MARCH:

• Median Sales Price increased 7.8% to $354,077
• Days on Market decreased 10.3% to 35
• Percent of Original List Price Received increased 0.8% to 102.7%
• Months Supply of Homes For Sale remained flat at 1.0

All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Home sales prices continue to reach new heights, and record gains in equity are motivating an increasing number of sellers to put their homes up for sale, according to Homelight’s 2022 Buyer and Seller Insights Report. With multiple offers common in many markets, many homeowners have high expectations when it comes to the sale of their home. More than 40% of sellers believe their home will sell for more than asking price, and about half of those surveyed expect to retain 30% or more of the sale price as a profit.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING APRIL 23:

• New Listings decreased 0.6% to 1,759
• Pending Sales decreased 22.8% to 1,176
• Inventory decreased 10.9% to 5,278

FOR THE MONTH OF MARCH:

• Median Sales Price increased 7.8% to $354,000
• Days on Market decreased 10.3% to 35
• Percent of Original List Price Received increased 0.8% to 102.7%
• Months Supply of Homes For Sale remained flat at 1.0

All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.