This just in from our state Realtor association:
Higher Interest Rates are slowing home sales.
Sales continued to soften in October even as listings rose slightly. Home prices increased modestly, further hindering overall affordability. Sellers listed 3.2% more homes than last year, marking the first year-over-year increase in new listings since May 2022.
Would-be sellers are reluctant to list due to the “lock-in effect” where homeowners are clinging to their attractive mortgage rates and monthly payments. Most sellers must turn around and become buyers, and buyers are feeling the triple pinch of low inventory, rising prices, and higher rates.
“After mortgage rates hit a 20-year high they’ve fortunately come down a bit, offering some reprieve to uneasy buyers,” said Emily Green, President of Minnesota Realtors®. “That said, every region is different but sellers who are willing to list might be pleasantly surprised.”
October Year-Over-Year Summary of Key Market Indicators:
Closed sales: 5,794 (down 7.1%)
Median sales price: $330,00 (up 3.1%)
Average sales price: $386,493 (up 3.0%)
New listings: 7,180 (up 3.2%)
Pending sales: 5,192 (down 3.7%)
Days on the market: 37 (up 2.8%)
Homes for sale: 13,997 (down 0.4%)