Twin Cities Housing Market: 2018 – September

Twin Cities Housing Market: 2018 - September

hey guys it's your housing market update for September of 2018 starting with mortgage rates the national average for a 30-year fixed conventional mortgage fell slightly in August from 4.6 percent down to four point five two percent however so far in September mortgage rates have spiked back up to a seven-year high of four point six five percent as the volatility in the bond market returned close sales the Twin Cities had 6655 residential closings in August that's up six percent month-over-month flat year-over-year and up fifteen percent from five years ago new listings seven thousand eight hundred and four new residential listings hit the market in August which is up two percent month-over-month up eight percent year-over-year and up eleven percent over five years notably this is the first time since 2012 that new listings have increased month over month in August which is a minor but interesting deviation from what has been a very strong six year trend of new listings falling in August homes for sale August ended with a home inventory level in the twin cities of twelve thousand four hundred and ninety two active listings that is up three percent month-over-month down four percent year-over-year down 28 percent from five years ago inventory is still relatively low but it just does appear to be on the rise notably again this is the first time that the home inventory level has risen in the month of August since August of 2013 yet another minor but interesting deviation from what has been a strong five-year trend of home inventory falling in August the median home price in August was 268,000 that is unchanged month-over-month up six percent year-over-year and up 29% from five years ago market segments the entire housing market is decelerating this time of year by far the best performing bracket is the starter home bracket currently to give you an idea of how the different segments are performing I'll give you them month supply of inventory by segment currently for homes under 300,000 1.7 months for homes from 300,000 to 500,000 there are 3.1 months of supply from 500,000 to a million there are five point nine months of supply over 1 million there are eleven point eight months of supply to put that in perspective what is considered to be a neutral market is between four and six months of inventory under four months of inventory is considered a seller's market over six months of inventory is considered a buyers market so you can see that under five hundred thousand is still in a seller's market when we get over five hundred thousand we are approaching actually a buyers market and over a million is in a buyers market last but not least pending sales are a leading indicator for future closings and have been predictably in decline since May and August five thousand six hundred eighty four residential units came under contract which is down five percent month-over-month down three percent year-over-year and up nine percent from five years ago it will be interesting to see if the trend deviations in listings and home inventory from August turn out to be leading indicators of a macro trend shift and housing or if last month was just a fluke in that regard this concludes my insight for September please don't hesitate to connect with me any time to discuss the market conditions in your particular neighborhood and I thank you for taking the time to watch this video

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