New Listings Decline in May as Buyer Activity Heats Up
Wide variations in closed sales across the state
MINNEAPOLIS (June 11, 2020) - The Minnesota housing market slipped in May, reflecting two months of pandemic-fueled economic turmoil. Skittish about putting their homes up for sale, sellers adopted a wait-and-see approach, causing a -24.2% decline in new listings compared to May 2019. Overall, the total number of homes available to home buyers was -20.4% versus May 2019. Consequently, pending sales dropped
-12.4% statewide compared to May 2019. Despite the downturn, buyer activity was vigorous, with many Realtors® reporting multiple offers on limited inventory. Other positive indicators reflected the strength and resiliency of the market. Key data points comparing May 2020 to May 2019:
Median sales price increased by +3% to $267,800
- Average sales price +1.6% to $299,358
- Pending sales dropped 12.6% to 8,560
- Days on the market fell by 2.1% to 46 days, compared to April
“These figures, especially the decline in pending sales, are more related to a lack of inventory than to the employment situation of home buyers,” said Chris Galler, CEO of Minnesota Realtors®.
The smaller number of homes for sale spurred sometimes frantic competition for available stock. In some regions Realtors saw multiple offers on homes priced within $50,000 of the area’s median price.
“In some markets we have a handful of homes for sale and a long line of prospective home buyers,” Galler said. “Although closed sales lagged -20.7% compared to last May, the figure follows April’s -20.5% drop in pending sales compared to the same period.” Given the increased demand, Galler sees the potential for healthier closed sales figures in June.
“Realtors® are beginning to see more listings as homeowners become comfortable with the protocols being taken to limit exposure to COVID-19,” Galler said. “In the past few weeks open houses have been returning to a new normal, and Minnesota Realtors® recently issued guidance to our members on how to safely conduct open houses. Many Realtors are using virtual-tour technology to help home buyers screen homes before entering them. This helps reduce individual contacts, saves time and helps buyers focus on the homes that fit their needs.”
Closed Home Sales Across Minnesota by Region
A closer look at regional closed-sales numbers reveals a range of activity throughout Minnesota. Some areas outperformed the state average of closed sales –20.7% compared to last May while others dipped well below that average. See charts for more details comparing May 2020 to May 2019.
Regions Above State Average
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