Closed Sales Down as Median Home Price Dips

By MNR News posted 05-18-2023 09:47 AM

Total number of homes for sale increases during slow start to sales season
MINNEAPOLIS (May 17, 2023) Although the weather was warming, sales activity across the state iced over as closed sales dropped almost 31% compared to April 2022. Other key market indicators felt the nip, too, with new listings down 27% and pending sales falling almost 29%. Buyers saw a welcome decrease in the median sales price to $335,000, a 1.5% decline over this time last year. This was reflected in homes spending longer on the market; the number of days before a sale increased to 41. Despite downward trends, competition for desirable properties remained brisk. On average, sellers were receiving 99.3% of their asking price, and in some areas multiple offers continued to drive up the sales price. Across the state, the total number of homes for sale increased just over 1% to 9,561. Overall, there was 1.7 months supply of homes on the market, nearly a 31% increase compared to last April.

“There’s no doubt that interest rates approaching 7% kept many prospective buyers home in April,” said Emily Green, president of Minnesota Realtors (MNR). “But as we entered May, the sun was out, interest rates were creeping down, and buyers were beginning to show interest again. The moment is right for demand to surge and draw more sellers into the market.

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

  • Closed sales decreased 30.9% to 4,522 

  • Median sales price decreased 1.5% to $335,000 

  • Average sales price decreased 0.6% to $386,617 

  • New listings decreased 27.0% to 7,290 

  • Pending sales decreased 28.7% to 5,769 

  • Days on the market increased 36.7% to 41 days 

  • Homes for sale increased 1.1% to 9,561 

Closed Home Sales Across Minnesota by Region 

In April, closed sales declined in 12 of all 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 30.9% year over year. Increases were reported in Northwest at 34.8%. The smallest declines were seen in North Central at 21.1%, Southeast at 23.8%, and South Central at 25.4%. The largest declines were reported in Upper MN Valley at 37.5%, Southwest Central at 41.9%, and Arrowhead at 43.0%. See the chart below for more details comparing closed home sales for April 2023 to April 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.