National economic trends can help inform what the housing market will do over the next year. Residential real estate should remain active if joblessness continues to decline and wage growth picks up. However, those increased wages must be in line with median sales price increases. Unfortunately, that has not always been the case. Add in factors such as increasing mortgage rates, student loan debt and lower affordability, and the balance becomes more interesting but not insurmountable for home purchasers.
In the Twin Cities region, for the week ending December 9:
• New Listings increased 3.0% to 762
• Pending Sales decreased 7.5% to 747
• Inventory decreased 23.5% to 8,837