Sales of new construction single-family homes fell to a 14-month low, dropping 6.6% in June compared to May, according to the Commerce Department, although sales of new homes remain 13.5% higher compared to a year ago. The recent decline in sales can be attributed to rising construction costs and building material prices, with these increases then passed on to consumers, and to labor and supply chain challenges, which have extended homebuilding timelines, frustrating buyers and further aggravating America’s housing shortage.

In the Twin Cities region, for the week ending July 24:

• New Listings decreased 3.3% to 1,786
• Pending Sales decreased 4.6% to 1,481
• Inventory decreased 25.9% to 7,400

For the month of June:

• Median Sales Price increased 14.8% to $350,000
• Days on Market decreased 52.4% to 20
• Percent of Original List Price Received increased 4.5% to 104.1%
• Months Supply of Homes For Sale decreased 42.9% to 1.2

All comparisons are to 2020

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Cash buyers continue to make up a significant portion of the U.S. housing market, with nearly one-third of home sales this year being all-cash purchases. Although investors make up a considerable number of cash sales transactions, the increasing availability of remote work during the pandemic has allowed some homeowners to sell their homes in pricey markets and relocate to less-expensive locales, where they’re able to pay cash for a new home, giving them an edge in a highly competitive market.

In the Twin Cities region, for the week ending July 17:

• New Listings increased 3.1% to 1,909
• Pending Sales decreased 12.0% to 1,422
• Inventory decreased 29.0% to 7,106

For the month of June:

• Median Sales Price increased 14.8% to $350,000
• Days on Market decreased 52.4% to 20
• Percent of Original List Price Received increased 4.5% to 104.1%
• Months Supply of Homes For Sale decreased 42.9% to 1.2

All comparisons are to 2020

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.