August 2022 home prices showed a gain of 5.6% over last August, when prices were 11.1% over the previous year. The last couple years have been in a fantasy zone, yielded prices never thought possible in the past… of course, mortgage interest rates were also lower than ever thought possible.
The average percent of list price received in August 2022 fell to just below 100%, at 99.9%. In August 2021 it was 102.4%
It makes sense that the percentage of sales with multiple offers has also fallen… at 13.6% of closed sales in August compared to 22.6% in April. (as tracked by listings with ‘multiple’ in their remarks)
It only follows that median sale prices are also softening… still 5.6% above last year but prices are not holding steady as they did last year throughout June, July and August.
As competition is waning, days on market is increasing, percent of list price received is decreasing, and median sales price is showing a lower year-over-year increase.
New listings, pending sales and closed sales were all down… by similar percentage drops.
Months supply of inventory has been increasing each month starting in April, but not as large a jump in August.
The supply of homes by price range and type has been holding pretty steady, still less than a 3 month supply for all price ranges under $1M. Even prices over $1M have less than a 5 month supply… indicating we are still locked in a housing shortage, longing for a balanced 5-6 month supply.
There is no year-over-year change in the supply of pre-existing homes for sale, but new construction is up 69.0% compared to last August. That is lower than the 80.8% increase in new construction inventory last month, indicating buyers are consuming some of that inventory in spite of rising interest rates.
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
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
RELATED POSTS