MARCH 2023
Current Market Conditions
In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% - 4.75%, its 8th rate hike since March of last year, when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-to-month as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing-home sales declining for the twelfth consecutive month, according to the National Association of Realtors® (NAR).
New Listings in the Twin Cities region decreased 24.3 percent to 3,423. Pending Sales were down 23.6 percent to 2,932. Inventory levels rose 7.1 percent to 5,327 units.
Prices were fairly stable. The Median Sales Price increased 0.6 percent to $342,000. Days on Market was up 40.9 percent to 62 days. Buyers felt empowered as Months Supply of Homes for Sale was up 44.4 percent to 1.3 months.
With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into spring.
The National Association of Realtors® (NAR) Legislative Meetings
The Realtors® Legislative Meetings is where NAR members take an active role to advance the real estate industry, public policy and the Association. Realtors® come to Washington, D.C. for special issues forums, committee meetings, legislative activities, and the industry trade show. This year’s Legislative Meetings take place May 6-11, 2023, and the Realtors® Trade Expo takes place May 8-9, 2023. The event is held annually in Washington, D.C. each May. Register here.
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Roseville's City Council has paused licensing of new short-term rentals in the city.
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Forest Lake developer proposed a mixed-used development near the Saint Croix River.
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Arden Hills' Twin Cities Army Ammunition Plant, now known as Rice Creek Commons, and the future of the site was highlighted on the "Curious Minnesota" podcast. New momentum may kickstart the project again.
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Affordable rental housing in Minneapolis surged in 2022, according to Mayor Jacob Frey.
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Minneapolis began a working group made of governmental and private entities to meet the goal of 150 public housing units each year.
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Edina said that work on a new apartment development can continue after irregularities were found in the building plans.
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The Southwest light rail project has hit another roadblock without a set timeline for continued construction.
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In the Twin Cities, affordable housing advocates and developers need help and a rent cap is not the answer, according to the Star Tribune.
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Twin Cities population decline and rent control ordinances have had a significant impact on new construction, especially for multi-family buildings. Twin Cities starter homes are also elusive and expensive.
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The Minnesota Legislature has passed $1.9 billion infrastructure improvement package.
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A bill in the Minnesota Legislature would prohibit corporate entities, developers, and residential contractors from flipping single-family homes into rental properties.
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A new proposal would allocated $10 billion over the next 10 years to provide affordable housing in Minnesota.
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The National Association of Realtors® (NAR) filed an amicus brief in a case involving a Minnesota statute that allows the government to seize a property and keep any surplus from the sale in excess of the debt.
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Saint Patrick's Day is just a few days away. In case you don't have any plans for the holiday, SPAAR's government affairs directors, Simon Opatz and Becky Wegscheid, are suggesting a few events to check out around the Twin Cities. Let us know which ones you attend!
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St Patrick's Day Live Music @ Brit’s Pub in Minneapolis: A little less oasis, a little more Irish, a lot of rock ‘n’ roll! In the Clubhouse lounge 7.00 pm music. No cover.
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Minneapolis Shamrock Stroll St Patrick's Day Weekend Bar Crawl: Join the Minneapolis Shamrock Stroll St Patrick's Day Weekend Bar Crawl. Do not miss out on March 18, 2023 for the chance to turn Minneapolis green!
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St Patrick Swayze's Day Party by Backyard Boombox and Bauhaus Brew Labs: Head over to Bauhaus for St. Patrick Swayze Day! Local Minneapolis DJs, tunes, brews, and Patrick Swayze movies on the big screen. Free cover!
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Saint Patrick’s Day Craft Fair: Celebrate Saint Patrick's Day on Friday, March 17th from 5-10 pm! Live music, special cocktails, food truck, and local art vendors. Wheelchair accessible venue.
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Sundays at Landmark, Day of Irish Dance: Stop by the Landmark Center on Sunday, March 19th from 11am to 5 pm to watch more than 500 dancers from 11 local Irish dance schools and groups. Stages will also include music and theatrical performances.
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If you have an issue in your community that needs the attention of Realtors® or if you have interesting advocacy stories to share, please reach out to Vice President of Advocacy & Community Engagement Joe McKinley or Government Affairs Directors, Simon Opatz or Becky Wegscheid.
The work of the Realtor® Party relies on your investment in the Realtors® Political Action Committee (RPAC).
Click here to learn about RPAC's non-partisan advocacy for homeowners and the real estate industry.
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If you have friends or colleagues who would like this information, please share this email and encourage them to subscribe.
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