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Pending Home Sales Rise Despite Scarce Inventory

By Minnesota Realtors® posted 07-10-2020 01:57 PM

  

MINNEAPOLIS (July 10, 2020) – In June, the Minnesota housing market pulled up from the steep declines seen last month. Pending sales rose +7.8% over June 2019 even as new listings were down -12.1% from a year ago. Buyers were out in force competing for shallow inventory with multiple offers. In June, there were 28.1% fewer properties available for home buyers to consider compared to a year ago. Closed sales in June dipped only -8.1% year over year, showing some recovery from the -20% declines seen last April and May.

Year-over-year metrics summary:

  • Closed sales down -8.1% to 8,954
  • Median sales price increased +3.4% to $273,000
  • Average sales price +2.0% to $307,384
  • New listings decreased -12.1% to 10,993
  • Pending sales increased +7.8% to 10,010
  • Days on the market rose +4.5% to 46 days
  • Homes for sale -28.1% to 16,325
  • Months supply of inventory -30.3% to 2.3 months

“When well-priced homes were placed on the market they received attention,” said Chris Galler, CEO of Minnesota Realtors. This reality played out in an environment where lack of properties and multiple offers nudged both median and average price numbers slightly over the prior year. The median home price was +3.4%, reaching $273,000.

“Inventory is a significant problem throughout Minnesota,” said Galler. “We experienced a 30.3% decline in the supply of homes for sale in June. That’s a problem as summer and early fall are generally the best and busiest times of the year for home sales.”

Affordability also continued to drive the residential real estate market throughout Minnesota. Fueled by lower interest rates for home mortgages, the Affordability Index, a national measure of housing affordability, rose 7.2% in June.

Not all numbers were positive in June. The impact of COVID-19 pandemic and the state-wide stay-at-home order dampened market activity.

“Home buyers and sellers hunkered down and obeyed Governor Walz’s directive as the virus numbers rose. This was especially noticeable in the seven-county metro area where the vast majority of cases were happening,” said Galler. “We understood the need to stay at home and as things open up its spurring some of the sales activity now."

Closed Home Sales Across Minnesota by Region

Regional closed-sales numbers reveal a range of activity throughout Minnesota. Many areas outperformed the state average of closed sales –8.1% year over year while others dipped well below that average, including the seven County Twin Cities region. See chart for more details comparing June 2020 to June 2019.

chart of regional stats
View full regional and county report here.

View statewide report here.

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 www.mnrealtor.com or follow us on Facebook, LinkedIn, Instagram and Twitter.


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