A RESEARCH TOOL PROVIDED BY MINNEAPOLIS AREA REALTORS®
Home price growth has slowed and now more closely matches income and wage growth—a healthy development. However, years of chronic undersupply seems to finally be weighing on sales activity. Although the economy should continue to scamper along for the rest of 2019, most economists see a mild recession on the horizon. As worries intensify over an escalating trade war, the Fed and traders reacted by sending rates and stocks downward. Those waiting to lock in a rate could see their patience pay off.
New Listings in the Twin Cities region increased 1.8 percent to 7,827. Pending Sales were up 3.2 percent to 6,161. Inventory levels fell 4.4 percent to 11,961 units.
Prices continued t o gain traction. The Median Sales Price increased 5.9 percent to $283,700. Days on Market remained flat at 38 days. Sellers were encouraged as Months Supply of Homes for Sale was down 4.0 percent to 2.4 months.
The current U.S. economic expansion recently became the longest on record. But it’s showing its age. Job growth, while still positive, has slowed somewhat as the budget deficit swells. A growing trade war is weighing on stocks, harming GDP growth and shrinking business investment. But wages continue to rise, unemployment remains (some would say too) low and confidence remains high even as life expectancy fell for a third straight year. There are plenty of positives, but keep an eye on the growing list of headwinds.
"Monthly Indicators:"; By Minneapolis Area Realtors; July 2019