A median home price of $357,200 statewide and a metro price of $390,000 reflected 2.1% and 2.6% increases, respectively. In total, 65.5% of Minnesota counties experienced year-over-year price gains, more than in August. While every situation is unique when it comes to downpayment, home price, insurance, taxes and utilities, a typical monthly payment on the median-priced home is roughly $2,890 for the metro and $2,642 statewide (metro included, assuming a 10% down payment for both). “It’s still all about payments,” said Jennifer Livingston, President of the Saint Paul Area Association of REALTORS®. “Today’s buyers are excited about owning a home but younger buyers in particular, who tend to be the most rate-sensitive, are also factoring in discretionary income into their overall budget for experiences, travel and more.”
Market times or days on market—the number of days a listing spends on the market before an offer is accepted—varied from 34 days in some regions to 90 days in other parts of the state. Metro homes spent 44 days on market, 12.8% higher than last September. Homes tend to sell faster in high-demand and low-supply environments, and sellers also tend to get close to or above their asking price. In September, sellers accepted 97.4% of their list price statewide compared to 98.4% for the metro, both slightly lower compared to last year. But activity varies widely based on price range, location and market segment.
A sustainable housing market depends on employed residents earning a decent wage and an ability to meet the demands of monthly payments, upkeep and repairs. Rates have come down recently due to concerns around our economy and labor market. But the government shutdown means we’re flying blind without the latest jobs report, among other impacts. Ultimately, the housing market remains “rate dependent,” rates are “Fed dependent,” and the Fed is “data dependent.” The latest economic data makes rate cuts more likely. Uncertainty in general typically triggers more demand for safe treasuries and bonds which drives the price up and the yield down. The 10-year yield in particular informs mortgage rates and is one of several indicators to watch in the coming months.