Median Home Price Dips as Closed Sales Decline

By MNR News posted 04-14-2023 11:02 AM

MNR projects healthy spring sales season
MINNEAPOLIS (April 11, 2023)—As spring began in Minnesota, the housing market was still locked in winter slumber. Closed sales across the state were down more than 20% over March 2022 while new listings declined nearly 25%. Due to slower activity, the average time a home stayed on the market increased to 50 days, up just over 35% from a year ago. The median price slipped marginally, just over half a percent to $320,000. On average, sellers got about 98% of their asking price for properties, a decline of 3.5% compared to a year ago. With homes staying on the market longer, the total supply of residential properties for sale in Minnesota increased nearly 5% over March 2022 to more than 8,800 homes. This pushed the total month's supply to 1.5 months, a 36.4% increase over March 2022.

“Weather put a big damper on sales activity in March, as did higher interest rates. Many sellers have been waiting for sunny days to clean the yard and take pictures. Meanwhile, multiple offers continue coming in for decent homes in the affordable range,” said Emily Green, president of Minnesota Realtors (MNR). “As we come into mid-April, spring has finally arrived. And though interest rates are still fluctuating, indicators suggest a downward trend. Given all these factors, we expect that pent-up demand will turn into heightened activity, and a very healthy spring sales season.”

March year-over-year summary of key market indicators:  
  • Closed sales decreased 20.2% to 4,435 
  • Median sales price decreased 0.6% to $320,000 
  • Average sales price increased 0.9% to $371,623 
  • New listings decreased 24.7% to 6,765
  • Pending sales decreased 26.9% to 5,236 Days on the market increased 35.1% to 50 days  
  • Homes for sale increased 4.9% to 8,836  

Closed Home Sales Across Minnesota by Region 

In March, closed sales declined in 11 of all 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 20.2% year over year. Increases were reported in two regions: Northwest at 16.7% and West Central at 0.9%. The smallest declines were seen in Headwaters at 4.7%, North Central at 19.3%, and Southwest at 19.4%. The largest declines were reported in Central at 26.5%, Arrowhead at 27.7%, and Upper MN Valley at 28.2%. See the chart below for more details comparing closed home sales for March 2023 to March 2022. 

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. 

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.comand follow us on Facebook, Instagram, Twitter and LinkedIn.