Earlier this week, Housing First Minnesota hosted a virtual town hall to hear an update on the housing market both on a national and local level. Topics ranged from activity in the new construction sector, mortgage rates, material prices, and more.
Speakers for this event included staff from Housing First Minnesota including James Vagle, CEO; Kristen Ober, communications and industry content coordinator; and Katie Elfstron, VP of public affairs.
The event started with a high-level overview of a handful of factors impacting overall activity in the market. The overall activity in the housing market continues to slow as buyers and sellers grapple with the wide-reaching impacts of rising mortgage rates. Scarce inventory continues to plague the existing market and has led to an increase in interest in new construction.
Then, event speakers highlighted how Minnesota’s housing market compares to others in the region. Minnesota’s median price for new single-family detached homes stands out against its Midwest peers for being much higher. The most recent data reports it at $534,945. This is compared to the second most expensive state, Illinois, at $469,995.
The presentation then moved on to discuss a medley of key housing market indicators like finished lot purchasing, remodeling sentiment, and the share of the GDP.
Finally, the presentation rounded out by looking at some possible scenarios for the housing market in 2024 and beyond. Speakers speculated on factors such as the future of mortgage rates and how a possible decline could lead to a spike in both home prices and overall activity by buyers and sellers.
Slides presented during the event can be found here.
Stay tuned for information on our next Membership Town Hall!
