Market Report
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Home Price Growth Stagnates as Rates Dampen Market Activity
Higher mortgage rates and overall affordability woes are leading to drop off in activity in the Twin Cities housing market on both the buyer and seller ends of the spectrum. Consequently, the median home price in the metro area saw a minute 0.6 percent growth to $342,000 in February. Moreover, the overall housing market is […] Read More
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Despite Headwinds, Builder Confidence Grows in February
Homebuilder sentiment rose for the second consecutive month, according to the latest report from the National Association of Homebuilders. Builder confidence in the market increased seven points in February to 42 – the second strongest reading since September 2022. This latest report, driven by softening mortgage rates and increasing demand for inventory, comes despite rising […] Read More
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Home Price Growth Returns to Historic Norms
According to new data from Minneapolis Area REALTORS® and the St. Paul Area Association of REALTORS®, the Twin Cities market started to show signs of a return to normalcy in February. The median home sale price was up 2.7 percent to $341,995. This is compared to nearly three years of about 10 percent year-over-year increases. According to […] Read More
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NAHB housing forecast predicts homebuilding activity to fall in 2023
The National Association of Homebuilders is projecting that single-family production will fall to in 2023, but start to rebound in 2024. NAHB made their annual forecast at this year’s International Builders Show in Las Vegas. NAHB’s chief economist Robert Dietz notes that the 2023 declines in building activity will feel more dramatic as production was […] Read More
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Higher mortgage rates sidelined buyers in 2022
According to new data from Minneapolis Area REALTORS® and the St. Paul Area Association of REALTORS®, the Twin Cities housing market last year was a tale of two markets. The first half of 2022 reflected much of the all-out frenzied feeling of the previous year and a half. Fierce and competitive buyer activity with multiple […] Read More
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January Marks a Sluggish Start for Homebuilding in the Twin Cities
Twin Cities homebuilders saw a slow start to their year in January as mortgage rates and overall affordability woes continued to keep potential buyers out of the market. According to the latest data from the Keystone Report, homebuilders in the Twin Cities pulled permits for single-family homes at a 46% slower rate than January 2021. […] Read More
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National median mortgage payment hits new high
The national median mortgage payment continued to climb in October. According to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), the national median payment applied for by applicants increased 3.7% in October to $2,012 from $1,941 in September. “Prospective homebuyers continued to feel the effects of higher mortgage rates in October, with the […] Read More
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Homebuilding feels slowdown as rates continue to sideline buyers
Fluctuating interest rates and overall economic uncertainty are continuing to impact the housing market. Homebuilders in the Twin Cities are also feeling the slowdown. In the month of October, permits for new single-family homes were down 54% from the previous year. Overall affordability also continues to be a hurdle for potential buyers. The Twin Cities median home price in October was $356,000. Read More
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Fed raises rates by 75 basis points
In its continued effort to fight inflation, the Federal Reserve raised the federal funds target rate another 75 basis points mid-September. This is the third consecutive increase of 75 basis points. The large hikes are sending shockwaves through the financial markets and the overall economy. Federal Reserve officials have now hinted at plans to continue […] Read More
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Millennials want to own homes, but affordability stands in the way
Rising interest rates, coupled with an already tight and competitive market, are impacting purchasing power of would-be homebuyers. Consequently, the housing market is starting to see a shift in who is buying homes — especially in the millennial age group. Millennials are now the largest generation of potential homebuyers, but this age group is becoming […] Read More
