Is The Housing Market Going To Crash?

Is The Housing Market Going To Crash? 

I wish I could say I have a crystal ball for you, but I do have real data from Minneapolis Association of Realtors.

First I don't think we are going to have a crash. Maybe a small adjustment but I don't think that is a bad thing.

Lets start with Median Sales Price Sept 22' to Sept 23'

As of October 6, 2023, the median sales prices for various property types have seen notable changes compared to September 2022. In the single-family detached category, the median price increased by 2.6%, from $389,900 to $400,000. Townhomes also experienced a significant rise of 5.7%, going from $284,900 to $301,000. On the other hand, condominiums saw a more modest increase of 1.3%, with the median price going from $197,500 to $200,000. When considering all property types, the median sales price increased by 2.2%, from $357,000 to $365,000. 

Inventory Sept 22' to Sept 23'

The inventory of homes for sale, as of the most recent data available, shows significant changes in various price ranges and property types. In the price range of $120,000 and below, there was a decrease of 14.8% from 115 properties in September 2022 to 98 in September 2023. Similarly, homes in the $120,001 to $150,000 range decreased by 100%, going from 125 to 143. However, in the higher price ranges, there were variations. For instance, in the $350,001 to $500,000 range, there was a 7.6% decrease from 3,005 homes to 2,778 homes. In contrast, the $1,000,001 and above category saw an 8.7% increase from 677 homes to 736 homes. When considering property types, single-family detached homes decreased by 10.7%, townhomes by 3.8%, and condominiums by 7.9%.

Pending Sales Sept 22' to Sept 23'

The data on pending sales offers valuable insights into the real estate market's activity. As of the most recent data available, there have been notable changes in pending sales across different price ranges and property types. In the lower price brackets, such as $120,000 and below and $120,001 to $150,000, pending sales have decreased by approximately 24% and 25%, respectively, compared to September 2022. Similarly, in higher price ranges like $190,001 to $250,000 and $250,001 to $350,000, there has been a substantial decline of around 34.5% and 23.9%, respectively. However, it's worth noting that the $350,001 to $500,000 range has seen a more modest 16.3% decrease in pending sales. These figures provide a snapshot of the market's activity and can help both buyers and sellers gauge the level of demand and competition in the real estate landscape as of September 2023.

What does my crystal ball say from this information? We are seeing a decline in pending sales (which that is typical for this time of year). But with the declining sales our home prices are staying steady and median sales price has gone up. 

5 Factors Why The Housing Market

Wont Crash

low inventory, lack of new-construction housing, large amounts of new buyers, strict lending standards and fewer foreclosures.

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