Home Sale Closings Plummet, Rising Mortgage Rates a Factor
Rising mortgage interest rates and stubbornly low inventory levels continue to impact local home sales.
According to recently released data from Minneapolis Area Realtors (MAR), Twin Cities home sale closings fell 20 percent in July compared to a year ago.
Double-digit drops were also seen around the northwest suburbs. Plymouth saw an 11 percent drop in closings. The cities of Brooklyn Park and Maple Grove both saw 14 percent declines in closed sales.
“Combined with rising rates, that’s left a hole in our buyer pool this year, but there is still plenty of pent-up demand for homes,” said Denise Mazone, president of Minneapolis Area Realtors in a press release to CCX News.
However, there may good news on the horizon for buyers. Mazone said there’s evidence mortgage rates are easing somewhat and inventory levels have grown for three consecutive months.
According to MAR data, the median sales price was $375,000 in July, down from the record $380,000 reached in June.
Related: Homes Under $500K Hard to Find, ‘This Market is Not for Faint-Hearted’