November Market Update SE Minnesota
New Listings Southeast Minnesota were down 14.5 percent to 336. Pending Prices moved higher as the Median Sales Price was up 8.8 percent to $255,000. Days on Market increased 18.2 percent to 39 days. Months Supply of Inventory was up 30.8 percent to 1.7 months. According to the National Association of REALTORS®. Although buyers have more options to choose from, home prices remain high, and soaring borrowing costs have caused monthly payments to increase significantly, with the average homebuyer paying 77% more on their loan per month compared to the same period a year ago, according to Realtor.com.
Housing affordability continues to be a major roadblock for market participants, with mortgage rates more than double compared to this time last year. Buyers are delaying home purchases in hopes rates will drop, while many sellers are trade in their current lower rates for significantly higher borrowing costs on their holding off on listing their homes due to weakening buyer demand. Unwilling to trade in their existing rate for the next property. As a result, existing-home and pending home sales have continued to slow as we move into winter.