The battle for balance in the Twin Cities Real Estate market continued for the week ending June 7th with both buyers and sellers pulling their punches. Sellers continued the strong trend of not listing their homes for sale, while buyers, whose activity had increased lately, went back to their corner for a rest. The Twin Cities market saw 2,256 new listing for the week, down 13.9% versus the same week last year (2,621). This is another week to show a double digit decrease from the year previous and the average decrease for the past 3 months is now at 15.9%! A sharp decrease in listing activity should be just the thing to send the supply/demand ratio down for a 10 count, but listings are only one half of the equation. We also need strong demand to get to the balance that the Twin Cities real estate market needs to be healthy and this week we gave back the slight increase in demand that we had last week. There were 919 new purchase agreements for the week, down 5.3% versus the same week last year (970). Averge days on market is at 159 and the average percent of list price is at 92.6%. Interest rates have increased slightly, hovering around 6.5%, bringing the Twin Cities housing affordabilty index* down to 149. Serious buyers need to be cautious not to sit out too long right now as interest rates are predicted to continue to rise which will further decrease their buying power.

Market Report for Minneapolis

Market Report for St. Paul

Market Report for Arden Hills

Market Report for Woodbury

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*The HAI formula measures housing affordability for the Minneapolis/St. Paul market. An HAI of 149 means the median family income is 149% of the necessary income to qualify for the median priced home using a 20% down payment, 30-year fixed mortgage.