As housing inventory builds up, an increasing number of U.S. homebuilders have been making price reductions to help boost new-home sales. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), 37% of builders reported cutting prices in June, up from 34% in May. The average price reduction was 5%, while the use of sales incentives, including mortgage rate buydowns, rose slightly to 62%.
In the Twin Cities region, for the week ending July 12:
- New Listings increased 9.9% to 1,843
- Pending Sales increased 3.9% to 949
- Inventory increased 5.8% to 9,901
For the Month of June:
- Median Sales Price increased 2.8% to $401,000
- Days on Market increased 11.4% to 39
- Percent of Original List Price Received decreased 0.1% to 100.0%
- Months Supply of Homes F