Home sales in the Twin Cities metro slowed considerably last month, but inventory constraints and fewer foreclosure sales caused the median price of all closings last month to increase more than 11 percent to $195,000. That's according to a monthly report from the St. Paul and Minneapolis Area associations of Realtors released this morning. These are the highlights:
- Closings were up 1.9 percent to 4,400
- Pending sales, an indication of future closings, fell 1 percent.
- Days on market fell 27.2 percent to 75 days (lowest level since 2006)
- Listing inventory fell 3.7 percent to 16,152 houses
A decline in closings isn't unusual at this time of year, but the decline in pending sales is worth a closer look. Were prospective buyers in a holding pattern last month because of the government shut down, or did a slight increase in mortgage rates delay sales? Are higher prices limiting the pool of buyers? Probably a combination of all those factors, we'll know more in the coming months.