Embracing the Changing Landscape of New Homes Weekly Update Ending June 24th 2023

Embracing the Changing Landscape of New Homes 

Weekly Update Ending June 24th 2023

A Promising Outlook for Homebuyers

The housing market is constantly evolving, responding to various factors that shape buyers' preferences and needs. The latest Weekly Market Activity Report sheds light on the shifting dynamics, highlighting changes in home sizes and key market indicators in the Twin Cities region. As we explore the data, it becomes evident that the market is undergoing a transformation, presenting new opportunities for homebuyers to find their dream homes. In this blog, we delve into the recent trends, focusing on the evolving landscape of new homes and the optimistic outlook for prospective buyers.

Changing Trends in Home Sizes:

According to the Census Bureau's latest data, the median square footage of single-family homes under construction in the United States saw a slight increase to 2,261 square feet in Q1 2023, compared to 2,207 square feet in Q4 2022. However, it is important to note that this figure represents a decline from 2,310 square feet recorded in Q1 2022. The steady decrease in home sizes last year signifies a departure from the trend observed in 2021 when home sizes grew due to historically low interest rates and the pandemic-induced shift towards spending more time at home.

Weekly Market Activity in the Twin Cities Region:

Analyzing the market activity for the week ending June 24, we find notable changes in key indicators in the Twin Cities region. New listings decreased by 20.9% to 1,492, reflecting a potentially tighter inventory of available homes. Similarly, pending sales experienced an 11.3% decline to 1,113, indicating a temporary slowdown in the number of transactions. Inventory also decreased by 9.7% to 7,660, suggesting a tightening supply of homes in the market.

Monthly Market Insights:

Looking at the month of May, several important metrics provide insights into the state of the housing market. The median sales price decreased by 1.3% to $370,000, presenting an opportunity for potential buyers to find homes at slightly reduced prices. Additionally, days on market increased by 65.2% to 38 days, affording buyers more time to thoroughly evaluate their options and make informed decisions. The percent of the original list price received decreased by 2.9% to 101.1%, indicating a potential willingness among sellers to negotiate and reach mutually beneficial agreements. Moreover, the months' supply of homes for sale increased by 35.7% to 1.9 months, indicating a growing availability of homes, albeit moderately, which is advantageous for buyers.

The ever-changing dynamics of the housing market present an optimistic outlook for homebuyers. The recent data emphasizes a shift in home sizes, with a departure from the previous trend of increasing square footage. While the Twin Cities region experienced a decline in new listings, pending sales, and inventory, these changes also create opportunities for buyers. The slight decrease in median sales price, increased days on market, and a rising supply of homes reflect a market that is adjusting to meet the needs of potential homeowners.

Remember, the right home is waiting for you, and with the current market conditions, now is the time to turn your dreams into reality.

Buyers:

If you're a buyer and have questions about the home buying process, be sure to download my Ultimate Buyers Guide.

Looking For A LOAN OFFICER? Check out Jane & Zach Johanns with New American Funding by  CLICKING HERE. You can even apply for pre-qualification right on the site.

Want to crunch some numbers before you buy? Try out my Mortgage Calculator  by clicking here!

Ready to start your home search?  Click Here To Get Started!

Sellers:

If you’re a seller, now might be the right time for you to put your home on the market. Wondering What Your Home Is Worth? I would love to help. Let's connect and set up a time to talk about your goals and plans for selling!