Builder confidence continues to rise thanks to a boost in new-home sales, as a limited supply of existing homes for sale has helped drive demand for new homes this year. According to the National Association of Home Builders (NAHB), builder sentiment rose 5 points in May to 50, the fifth consecutive monthly increase and the highest level recorded since July 2022. With interest rates up compared to this time last year, builders’ use of sales incentives has played an important role in attracting buyers, with an average price reduction of 6% reported among the builders surveyed. In the
Twin Cities region, for the week ending June 3:
• New Listings decreased 20.7% to 1,464
• Pending Sales decreased 9.8% to 998
• Inventory decreased 6.7% to 7,000
For the month of April:
• Median Sales Price remained flat at $369,900
• Days on Market increased 64.3% to 46
• Percent of Original List Price Received decreased 3.6% to 100.1%
• Months Supply of Homes For Sale increased 33.3% to 1.6