Home Supply Up; Frantic Buying Pace Slows

By MNR News posted 22 days ago

  

Interest rates and inflation give buyers pause

MINNEAPOLIS (September 13, 2022) — In August, closed sales were down 17% compared to a year ago, with 8,256 transactions across the state. New listings followed the cooling trend, falling 17.9% compared to last August even as the total number of homes for sale increased by 2% to 13,271. This bumped up the supply of homes on the market to 1.9 months, an 18.8% gain over last year. Although the median sales price increased 4.4% to $330,000, sellers were receiving slightly less than their asking price, down 2.2% to 99.3%. Homes were sitting longer, too, with days on the market averaging 29 days, up 7.4% from August 2021.

“The trend toward more normal market conditions continued in August, signaling a more buyer-friendly environment,” said Chris Galler, CEO of Minnesota Realtors. “Although homes with desirable features in an affordable price range are still fueling competition, the frantic ‘drive-by buying’ of a year ago is over. With an increasing supply of properties to choose from, buyers are becoming more thoughtful and discerning, and less likely to rush a purchase. Rising interest rates and the broader inflationary environment has also dampened activity. Still, for buyers with the means to go forward, this is a good time to find the right home without the stress and pressure of a heated market.”

August year-over-year summary of key market indicators:
  • Closed sales decreased 17.0% to 8,256
  • Median sales price increased 4.4% to $330,000
  • Average sales price increased 4.6% to $383,759
  • New listings decreased 17.9% to 9,033
  • Pending sales decreased 19.0% to 7,592
  • Days on the market increased 7.4% to 29 days
  • Homes for sale increased 2.0% to 13,271

Closed Home Sales Across Minnesota by Region

In August, closed sales declined in 9 out of 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 17% year over year. Four regions reported increases: Northwest at 23.6%, Upper MN Valley at 7.1%, West Central at 7%, and Southwest at 0.8%. The smallest declines were seen in Headwaters at 0.8%, South Central at 2.1%, and North Central at 9.9%. The largest declines were reported in East Central at 19.8%, 7-County Twin Cities at 20.1% and Central at 26.2%. See the chart below for more details comparing closed home sales for August 2022 to August 2021.


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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