Twin Cities Housing Market: 2018 – December

Twin Cities Housing Market: 2018 - December

hey guys it's your twin cities housing market update for December of 2018 also I want to wish you happy holidays and a prosperous 2019 I'll start with mortgage rates mortgage rates nationwide have retraced from four point nine five percent in mid-november back down to a three-month low as I record this video of four point six three percent for a 30-year fixed conventional mortgage in his most recent speech Fed Chairman Powell appeared more dovish with language that could be an indication of a slowdown in their plans to normalize interest rates the Fed is meeting today the 18th tomorrow the 19th and the minutes of those meetings will provide us some additional insight as to what their actual plans will be or at least what they claim their plans will be for the future those minutes will likely be released prior to the publishing of this video from my perspective by keeping interest rates artificially at zero for eight years and by massively increasing their balance sheet during that time the Fed has created an economic environment that has them holding a double-edged sword additional rate hikes and liquidations are likely to continue to be bearish or very bearish for equity markets but prematurely ending that cycle that tightening cycle is likely to be very bearish for the US dollar and also could be bearish for equity markets as the Fed would then essentially have to admit that the economy is not doing as well as they had previously claimed home builder confidence in December home builder confidence nationwide fell six percent to a three and a half year low of 56 close sales now close sales in the twin cities fell 12 percent in November to 4653 residential closings that was an expected decline for this time of year and close sales are flat year-over-year new listings fell 34% in November with 3990 for homes hitting the market in in November a decline that was expected month over month but new listings are notably up 13% year over year Homes for Sale the home inventory level fell 15% in November leaving 10,000 268 homes for sale that monthly decline was also expected but the homes for sale level is notably up 14% year-over-year the median home price in the Twin Cities remained flat at 265 thousand which is pretty much in line with the cyclical trend and what is to be expected for this time of year pending sales fell 20 percent in November with three thousand eight hundred and seventy nine homes coming under contract a monthly decline like that was also expected but the pending sales are notably down four percent from this time last year that concludes my monthly market insight for December please don't hesitate to reach out to me if you'd like to discuss your particular market segment or the valuation of your current home and I thank you for taking the time to watch this video

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