July 2018 real estate update… closed sales steady for 4 years

What struck me the most about the real estate stats for July 2018 was how, after peaking in June, closed sales have been almost identical for the past 4 years. Remember that closed sales typically lag 4-6 weeks after accepting an offer, so July closings mark the end of the spring season. August closed sales typically pop up again a bit, reflecting the typical uptick in activity following July 4th vacation time.

While new listings are on their annual downward trend, new listings in July 2018 were actually 4.1% higher than last year.

Average percent of list price received settled down to 99.8% after being over 100% for the last two months in a row. Median sales prices rose 6.6% when comparing July 2018 to July 2017. With total closed sales holding steady, these metrics seem to be more a reflection of market demand than price inflation.

Days on market continue to fall to historic lows, again keeping prices strong due to consumer demand.

Pending sales finally inched above last year for the first time in 2018… a good indication buyers are struggling to buy.

Both inventory and months supply of inventory continue their downward slide… causing some potential home buyers to give up their search in frustration.

Months supply of homes for sale continues to be lowest for price ranges under $250k, with prices $250k-$350k not far behind with a 2.2 month supply. It is a seller’s market even in the $350k-$500k price range with a 3.4 month supply. Only in the $500k-$1M price is the market balanced between buyer and seller.

Townhomes have consistently been in shortest supply, with July 2018 months supply again 20.0% below last year.

Low inventory continues to be the biggest challenge.

The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.

Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.

Click here for local reports on 350+ metro area communities

RE/MAX Results HomesMSP Team – info@homesmsp.com

 

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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