Rising interest rates and higher sales prices have caused affordability to decline significantly this year, and U.S. homebuilders have taken note. New homes have been getting smaller throughout 2022, with the U.S. Census reporting the median square footage of homes under construction was 2,276 in the third quarter of 2022, down 2.5% from the fourth quarter of 2021, when the median square footage was 2,335. The trend toward smaller homes is expected to continue in the months ahead, as homebuyer budgets remain constrained.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 3:

• New Listings decreased 18.8% to 717
• Pending Sales decreased 34.3% to 637
• Inventory increased 14.4% to 7,879

FOR THE MONTH OF OCTOBER:

• Median Sales Price increased 4.6% to $355,500
• Days on Market increased 33.3% to 36
• Percent of Original List Price Received decreased 2.0% to 98.3%
• Months Supply of Homes For Sale increased 33.3% to 2.0

All comparisons are to 2021

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