Closed Home Sales Down in November as Supply Drops Sharply

By MNR News posted 12-13-2021 12:56

  
Median price rises as buyers compete for scarce housing stock

Nov Housing report title cardMINNEAPOLIS (December 13, 2021) — Closed sales of residential homes were down 4.1% compared to November 2020, continuing a year-end cooling trend in the Minnesota housing market. In an indicator that buyers are still actively pursuing purchases, the median sales price rose 7.2% to $304,500. At the same time, days on market—the average time a property is available between listing and closing—shrank 13.2% to 33 days. New listings inched up 2.1% to 5,645 properties. Sellers remained in a strong position, receiving 99% of their asking price, a statistic that remains unchanged from last year. Overall, the number of homes for sale dropped 22.2% to just 9,355 units. This leaves just 1.2 month’s supply of properties on the market, down 20% from last November.

“November’s decline in closed sales marks a return to seasonal normality. Despite comparisons to the unusually high number of sales a year ago, this month’s closed sales reflect a healthy and robust market,” said Chris Galler, CEO of Minnesota Realtors. “Buyers are still highly motivated and willing to meet or exceed the asking price. Inventory is a persistent challenge, which is likely to continue tempering the market when the 2022 sales season gets under way.”

November year-over-year summary of key market indicators:

  • Closed sales decreased 4.1% to 7,761
  • Median sales price increased 7.2% to $304,500
  • Average sales price increased 7.3% to $351,921
  • New listings increased 2.1% to 5,645
  • Pending sales increased 4.0% to 6,662
  • Days on the market decreased 13.2% to 33 days
  • Homes for sale decreased 22.2% to 9,355

Closed Home Sales Across Minnesota by Region

In December, closed sales declined in seven regions compared to a year ago, bringing Minnesota’s average to -4.1%. Bucking the trend, five regions reported increases, with two areas marking double-digit gains: Southwest at 15.5%, and Upper MN Valley at 13.3%. Southwest Central saw the largest decline with closed sales at -20.9%. Two other regions with significant declines were West Central at -16.2%, and South Central at -11.2%. See the chart below for more details comparing closed home sales for November 2021 to November 2020.

November housing report statistics

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.

About Minnesota Realtors®

Minnesota Realtors® (MNR) is the membership organization supporting all 22,000 Realtors® in the state of Minnesota. MNR is dedicated to helping Realtors® succeed in providing comprehensive and informed guidance to their customers seeking to buy or sell a home. MNR provides Realtors® with a code of ethics, continuing education, real estate transaction forms, legal services and dispute resolution, as well as lobbying and advocating for homeownership rights and the real estate industry. MNR works in partnership with the National Association of Realtors, as well as more than 15 affiliate regional associations within Minnesota. MNR is a non-profit organization founded in 1919, with headquarters in Minnetonka, Minnesota, and a branch office in St. Paul, Minnesota. Find us at  www.mnrealtor.com and follow us on Facebook, Instagram, Twitter and LinkedIn

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