Residential real estate surged in the metro area and southern Minnesota as spring fever hit the markets early. New listings were up +17.3% statewide over last February, and closed sales climbed to +4.1% compared to the 12-month average of +1.4%. Warm weather, low interest rates, and a higher affordability index fueled the trend. But even with the increased number of homes on tap, inventory is low.
“Through February, there is only a 63-day supply statewide” observed Chris Galler, CEO of Minnesota Realtors®. “By contrast, a typical housing market has between 120-180-day supply.”
He added that although some markets in Greater Minnesota have inventory levels cresting above 63 days, very few approach the 120-day mark.
Regionally, the Twin Cities matched the statewide increase in new listings, but homes moved twice as fast with an +8.2% increase in closed sales. Houses in the Twin Cities 7-country region are on the market only 51 days – nearly 2 weeks less than the state-wide average of 63 days. The central and northwestern regions of the state bucked the positive trend, with new listings in the Arrowhead dropping -11.1% and North Central sinking -3.4% over last year.
Average sale prices continued their upward trend reaching $290,202. Although that’s up +6.2% from a year ago, it’s still below the yearly average of $291,697. Statewide the median sales price was up +7.6% for February at $255,000. Much of that was driven by the seven-county Metro where the median is $288,250. However, in most areas of the state the median home price is considerably more affordable.
Galler predicts that the early spring and recent reductions in the 30 and 15-year mortgage rate will continue accelerating the housing market, bringing in many more first-time home buyers.
“Home buyers and sellers will need their agents to navigate the robust conditions. Multiple offers, especially in the median-priced markets will be common in many areas. It will be a seller’s market,” Galler said.
View the February Housing Report here.
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About Minnesota Realtors®
Serving more than 21,000 real-estate professionals, Minnesota Realtors® (MNR) unites and empowers Realtors® throughout the state so they can thrive. Dedicated to helping Realtors® build their careers and grow their businesses, MNR provides a wide range of services and resources that include legal services, community education, government affairs, and code of ethics and standards of practice support. Founded in 1919, MNR is a non-profit organization. For more information, visit mnrealtor.com.
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