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Twin Cities Real Estate Market 2023?

Twin Cities Real Estate Market Not Collapsing, Prices Not Falling

Homeowners, home buyers , REALTOR Bradley Van Mill, coming to you and have you been listening to the news in the Twin Cities Real Estate Market?

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Everybody is talking about a doom and gloom and how our housing market is about to collapse and how host prices are about to fall off a cliff so I’m going to hide out here in the Woods in Northern Minnesota, while we put data to work, grind through seven months of real estate data to let you know what’s really happening in our housing market? Let’s take a look.

Home Sales Down, Pending Sales Down 20 Percent in July

Let’s dig deep into the update this month and begin with buyer demand or home sale where data can confirm what the news is reporting home sales are down over 10 percent year-to-date and nearly 20 percent in July, compared to a year ago and looking the 5500 Home sales in July is important because the last time we saw a number lower than that was in 2012, just as we were coming out of the bubble crash and when we look at another demand number pending sales, we see similar activity telling us demand will continue To drop with pending sales down 20 percent last month, meaning those interest rate hikes will continue to cause weakening demand in the future.

But does that mean our housing market is dangling out on a limb? Well, remember: the market depends on a balance of not only demand but also supply.

Twin Cities Real Estate Market

Homeowners Shouldn’t Worry About Low Supply

So before we panic, let’s have a dig into the data into what’s going on with supply by looking at our new listings, where we see about 6 900 homes hitting the market in July down over 16 percent from last year, and that’s a number very similar to the amount we Were down in demand and look, that’s not the only similarity between supply and demand, as if we look at those 11 July worth of supply data, we see that last month was the lowest number we’ve seen since 2012.

So, with the drop in demand balanced by the drop in supply, we take a look at our crystal ball number of months of supply and see that while a 20 move up is a bit concerning, we remain at less than two months of supply and remember: we Need five months of supply just to get into a neutral market, with a low supply number like that, We see median home prices come in at 375, 000 in July, up over seven percent from a year ago and up nearly nine percent year to date. So data says to homeowners not to worry.

Twin Cities Real Estate Market

Home Prices Continue To Rise Despite Slowdown

This is just a slowdown and remember a recession does not equal a drop in our housing market. As a matter of fact, four of the last six recessions have seen home prices increase and for home buyers. Here’s three reasons for buyers to be more excited about this market.

As demand drops, we see less bidding wars for buyers, allowing them more time and protection in their home purchase. Also, while the market is still competitive, we see fewer sales over asking price now and finally, with inventory. Trending up means more options for you to find the perfect home during your search, so stay tuned.

The data isn’t seeing anything too scary yet in the market, but he’ll keep looking and make sure to keep you updated all right, you guys, that’s what the data says is really happening in our market and it sounds like maybe it’s not as bad as the News wants us to think so: I’m going pack up head out of the Woods and see if I can find a beach someplace. You guys enjoy the rest of summer.

Twin Cities Real Estate Market Outlook for December

We’ll see you 3 month.

Read More: Real Estate Predictions 2023?

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