Twin Cities realtors discuss 2022 housing market, preview 2023 market

Wednesday, members of the Minneapolis and St. Paul Realtor Associations provided insight on the area’s housing market.

During a news conference, realtors offered an overview of the 2022 housing market and gave some predictions for 2023.

It comes less than a week after members with the Minneapolis Public Housing Authority said they are launching a plan called “The Family Housing Expansion Project,” which will include the conversion of 15 family home sites into 84 affordable housing units for low-income families, or those transitioning from homelessness.

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The realtors noted that 2022 started off with a very competitive housing market but, as interest rates rose, the market significantly cooled off. However, they added that sellers are still getting strong offers and the market is right around historical “normal” levels.

Cities with the most home sales last year were: Minneapolis, St. Paul, Lakeville, Maple Grove, Plymouth, Woodbury, Brooklyn Park, Blaine, Bloomington and Burnsville.

Looking at 2023, the realtors said price growth is expected to continue, although at a slower pace, and sales are expected to be at a more “normal” level.

As previously reported last week, mortgage buyer Freddie Mac said the average on the benchmark 30-year mortgage rate fell from 6.48% to 6.33%. That rate reached a two-decade high of 7.08% in the fall. A year ago, the average rate was 3.45%.

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That report came after numbers issued in December showed sales continue to drop for a tenth straight month of previously occupied U.S. homes.

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