Showings activity:
Showing activity for the week ending 1/25 declined 19.4% compared to the same week last year. Every price range had less activity, with year-over-year change ranging from -41.7% to -6.0%. The $300-400K range was the segment with the smallest decline in showing activity (-6.0%). The largest dip in showings was in the $1M+ range where activity dropped 41.7%. The $300-400K range comprised 30.8% of activity while showings over $1M comprised 2.2% of all showings. As expected, showings have served as a reliable leading indicator for purchase activity. Mortgage rates were within a few basis points of a 3-year low. November signed purchase agreements were flat while preliminary December pending sales showed a 9.0% decline. Preliminary Twin Cities metro sales tumbled over 10.0% in December and reached thier lowest level for any month of any year since January 2007.
November statewide monthly market activity*:
- New listings rose 2.4%
- Pending sales decreased 1.7%
- Inventory levels were up 1.5%
- Months’ supply declined to 2.7 months
- The median home price was up 2.9% to $350,000
- The typical market time was flat at 45 days
- Sellers accepted 96.7% of their list price on average
(*This reflects official statewide market activity while the linked report includes the most recent NorthstarMLS-wide activity which accounts for 96% of MN sales)
On the mortgage rate and economic front:
At 6.2%, mortgage rates are just barely above their three-year lows. Despite an improved rate environment, both showing and purchase activity have been softening. The economy and labor market continue to cool off. The latest inflation report was in-line with expectations but some question the quality of the data. The Fed's tools typically influence short-term interest rates while mortgage rates more closely follow the 10-yr yield. The independence of the Fed has been a concern of late as political pressure to run the economy hot continues to grow. Maintaining the independence of the Fed is key to managing inflation, the labor market and monetary policy regardless of the party in power.
To view the latest Weekly Showings Report click here.