Market Update: August 2022

Welcome back for another recap of the Twin Cities real estate market! As summer comes to a close, we will be looking to see how the trends compare to last year at this time, and possibly what they can tell us about how the fall season is going to kick off as we enter the final quarter of the year. Let's take a look.

If you tuned in last month, you may have noticed that we witnessed a sharp turn in direction for pretty much every statistic we follow. While a dip in the numbers is pretty typical for summer here in Minnesota, the severity of the turn was a little surprising. Therefore, we were anxious this month to see if that would continue, or mellow out a bit. Turns out it was the latter.

The Average Sale Price peaked in June to the highest we've ever had on record ($447k), but with two declining months in a row is now sitting at $430k. This is still higher than any of last year's numbers, but we'd expect it to decline a bit more if inventory levels continue to climb as they have been. The Median Sale Price followed the same trend and landed at $370k for August, down by $5k from July.

Days on Market is following almost an identical line trend to all of last year, but is climbing a bit earlier in the season. For August we are now back up to two full weeks of average market time, which didn't happen until October in 2021. Again, this is pretty typical for this time of year, as August is usually a bit of a slower month. Months Supply of Inventory has remained at 1.7 months, which is still this year's peak, but had been climbing for five consecutive months until now.

Finally, we'll break down inventory levels by looking at the number of New Listings for the month, which landed at 5,795. This is the second month of decline in a row, but did not dip at an alarming level. Total Inventory did go down just a tad, landing at 8,291 after eight consecutive months of upward trend. The Total Units Sold is probably the most telling indicator of where the market sits today, and came in at 4,692. This is roughly 2,300 less homes than last year at this time.

All in all, the data shows us a pretty typical trend for this time of year, especially when you zoom out and look at the year as a whole. While the market may not be as aggressive as it was a year ago, things are still selling quickly and fall could bring us right back into another competitive market, as it tends to be a very busy time of year for home sales. Be sure to link up with your favorite VIBE agent if you're planning to make a move yet this year. Thanks for tuning in, and we'll see you next month.