Home prices are softening in many markets across the country, as sales slow under the weight of higher mortgage interest rates and elevated sales prices. With rates now double what they were a year ago, many experts believe additional price declines are on the horizon. According to Moody’s Analytics, more than half of the nation’s largest regional housing markets were overvalued by more than 25% in the second quarter of 2022, making these areas at risk of price declines of 15% – 20% over the next 12 – 18 months.
In the Twin Cities region, for the week ending September 10:
• New Listings decreased 18.8% to 1,407
• Pending Sales decreased 29.8% to 816
• Inventory increased 1.9% to 8,678
For the month of August:
• Median Sales Price increased 5.7% to $369,900
• Days on Market increased 22.7% to 27
• Percent of Original List Price Received decreased 2.4% to 99.9%
• Months Supply of Homes For Sale increased 20.0% to 1.8