Slow spring for single-family housing
Despite falling mortgage rates and solid wage growth, new home construction had a lackluster spring. Year-to-date through April single-family permits across the state were down 2% compared to 2018. Single-family permits in the Twin Cities were down 8.5% compared to this time last year. Meanwhile, inventory of existing homes for sale continues to fall, driving home prices to new all-time highs. According to the Minneapolis Area REALTORS®, the median sales price in the Twin Cities increased by 5.2% to $281,000 this April. It is clear the demand for new homes in the market is there, but the high cost of housing is keeping many waiting on the sidelines.