The Twin Cities housing market reacted as anticipated in the week following the end of the government tax credit. For the week ending May 8, there were 1,133 Pending Sales, a 4.4% drop below last year at this time. The year-over-year decline, which was the first since March 6, was likely owing to the number of buyers that acted in advance of the end of the tax credit.
Three other important numbers:
- Housing Affordability has dropped slightly for the month of May to 202. This is a 7.8 percent decrease from last year and is a product of both rising home prices and interest rates.
- After peaking in mid-April, New Listings continue to fall, settling at 1,550 units, down 24.7 percent from the same week last year.
- Months Supply of Inventory seems to be settling as well. At 6.7 houses per buyer, this is 13 percent below last year. This, too, is an indicator of some leveling in the market between buyers and selleWrs