Twin Cities real estate market sees 23% drop in sales in July

Home for sale sign.
Home for sale sign. Photo credit Getty Images

Twin Cities real estate sales were down more than 23% in July, with the typical mid-to-late summer lull in full effect.

Minneapolis Area Realtors President Denise Mazone shared that buyers staved off purchases because of rising interest rates and almost non-existent inventory on the market.

"Buyers are just kind of sitting back, looking, seeing what's happening, and taking their time," Mazone said. "Sellers are slow to put things on the market."

The low supply of houses has caused those on the market to skyrocket as both buyers and sellers remain hesitant.

Earlier this month, the National Association of Realtors announced that home prices hit all-time highs in the second quarter of this year. Of the 184 of the 185 metro areas that the NAR tracks, the median sale price in each market rose compared to last year's second quarter.

The findings reported that the median cost for a single-family existing home hit $413,500, a new record and 14.2% increase compared to last year's second quarter.

Mazone says lower-priced homes, ticketed at $250,000 and under, are among the group in short supply right now.

She continued saying that anyone in that price range is being left frustrated as the market is all but dry for them.

However, Mazone said that while last year there was a lot more inventory available for buyers than what we are seeing now, she thinks that "we are getting back on track in a way" as inventory is expected to get back to normal.