As closed sales rise and inventory shrinks, new listings can’t keep pace
Competition for scarce housing stock defined Minnesota’s real estate market in June, pushing the median sales price to $325,000, up 18.9% above June 2020, according to Minnesota Realtors® (MNR), the membership organization supporting all 22,000 Realtors in the state. Closed sales rose 12.9% over last year, and a surge of new listings brought 11,908 properties to the market, a 6.5% increase. In a key indicator of the frenzied sales activity, days on the market sank 45.7% to just 25 days—a historic low. Overall, the state’s number of homes for sale were down 40.8% compared to last June, with only 1.2 months of supply available. On average, sellers were getting 103.2% of the asking price, pushing the average sales price to $367,753, +9.3% above 2020. This is an unprecedented milestone.
“The market continues to be highly dynamic but it’s constrained by the number of affordable—and desirable—homes for sale,” said Chris Galler, CEO of Minnesota Realtors. “Rising home prices, competitive bidding, and cash offers are squeezing out many first-time homebuyers. Unfortunately, our ability to create more housing is limited by a complex interplay of factors, from construction costs to government regulations. Based on the numbers, it’s a trend that will continue playing out for the foreseeable future in Minnesota.”
June year-over-year summary:
- Closed sales: +12.9% to 10,386
- Median sales price: +18.9% to $325,00
- Average sales price: +19.3% to $367,753
- New listings: +6.5% to 11,908
- Pending sales: -7.0% to 9,620
- Days on the market: -45.7% to 25 days
- Homes for sale: -40.8% to 10,227
Closed Home Sales Across Minnesota by Region
Eight of the state’s 13 regions reported increases in closed sales compared to June 2020, with four regions seeing double-digit growth, including an increase of 20.6% in the seven-county Twin Cities. There were declines in five regions, with double-digit drops in the Upper MN Valley, 11.6%; West Central, 13.1%; and North Central, 15.0%. See the chart below for more details comparing closed home sales for June 2021 to June 2020.
The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, on which MAR & SPAAR local associations report.
View full regional and county reports here.
View statewide report here.