Despite increases in new listings in recent months, America is facing an epic housing shortage, with realtor.com reporting the U.S. needs an additional 5.24 million homes to meet current population needs, an increase of 1.4 million homes since 2019, as new-home construction has failed to keep up with household formations. Assuming the rate of household formations continues, the average rate of new home completions would need to triple over the next 5 – 6 years in order to meet current demand.
In the Twin Cities region, for the week ending September 18:
- New Listings decreased 10.5% to 1,736
- Pending Sales decreased 18.1% to 1,289
- Inventory decreased 15.0% to 8,287
For the month of August:
- Median Sales Price increased 11.1% to $350,000
- Days on Market decreased 43.6% to 22
- Percent of Original List Price Received increased 2.1% to 102.4%
- Months Supply of Homes For Sale decreased 26.3% to 1.4
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.