Market Update: September 2022
Posted by VIBE Realty on Thursday, October 13th, 2022 at 9:02am.
Welcome to the first official recap of the fall season here in the Twin Cities!
Seems like there's so much news going around about the housing market lately. Economic factors like inflation, interest rates, student loan debt and more are sparking questions about where the market is at and where it might be heading. Here in our recap, we rely on the most recent data to help us stay on top of what we're going through, so let's dig into last month's numbers.
We don't usually start with the Average Days on Market (DOM), but it was one of September's most notable metrics. In just the span of one month, the average DOM grew by a full business week (5 days), which is its largest climb all year by far. It now sits at 19 days, which is just shy of its last peak of 20, which happened all the way back in January. This is nearly three times as long as the lowest we've seen this year, so on average, homes are sitting on the market about three times longer than they were in spring.
Next, we'll look at the price points. The Average Sale Price for last month came in at $425k, which is about five thousand less than in August. While this is the third month in a row that this number has declined, its subtlety indicates that it is not nose-diving. The Median Sales Price landed at $362k, about seven thousand below August.
Examining the inventory levels, we can see that there is, in fact, more inventory than we've had all year. The Months Supply of Inventory hit its peak of the year at 1.8 months, but even that has only climbed in small increments all year. Total Inventory for the month was at 8,764 homes, which is also the highest all year and about five hundred more than last month. Total Homes Sold only went down by 175 houses, and came in at 4,516, and there were slightly more New Listings this month, landing at 5,837 (50 more than August).
What does all of this mean? Well, with the housing market being looked at under a microscope, it seems that people are looking for a full-blown turning point to signal a big shift. However, that's just not what the data is telling us. Yes, there are more homes on the market now, and no, they're not selling quite as quickly. But, all indicators still point to this being a market that ultimately favors sellers. So maybe this would better be described as a slow turning ship instead of a full pivot.
There's still plenty of time left in the year to make a move, so if you are planning to do so, be sure to connect with a VIBE agent to help you navigate the market as it changes. We stay on top of what's happening so you don't have to.