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Home Prices, Inventory Rise as Market Activity Warms in June

By MNR News posted 07-17-2023 12:25 PM

  
Minneapolis, MN - July 17, 2023—A new report by Minnesota Realtors® today reveals that despite several year-over-year decreases across key housing market indicators in June, sales activity showed signs of warming up. Inventory experienced a slight increase over the previous month, with a modest upturn in the Minnesota housing market.

Closed sales decreased 17.4% compared to June of the previous year, settling at 7,776. However, closed sales surged by 1,916 homes versus May of this year, signaling continued demand and competition for appealing properties in some areas to start the summer. The median home sales price crawled back up, increasing by 1.4% to reach $350,000 over the same period last year. Additionally, the average sales price saw a slight uptick, rising by 0.9% to $405,952.

Though new listings fell by 15.3% with 9,822 properties listed, pending sales demonstrated relative strength, only decreasing by 10.2% to 7,345 while increasing over the previous month of May. Days on the market jumped 20.8% to 29 days versus June 2022—but that mark is down five days on average from May, indicating ongoing competition given the chronic inventory shortage.

The number of homes available for sale also saw a decrease of 9.3%, settling at 12,067—but the months supply of inventory has steadily improved during each month of this year, climbing to 2.2 months supply in June. Sellers continued to receive over 100% asking price on average, reinforcing the robust demand and competitive nature of the market. 

“We were encouraged by the increase in market activity last month,” said Emily Green, President of Minnesota Realtors®. “Prospective buyers adjusted to the higher mortgage rates and demand remained strong. We witnessed healthy competition for properties, with multiple offers in some areas. Although the state has a way to go in terms of achieving a truly balanced market, the inventory uptick during June was a welcome sight. We expect prices to stabilize as we enter the second half of the year and could see pockets of activity into the fall season across Minnesota.” 

June Year-Over-Year Summary of Key Market Indicators: 

  • Closed sales decreased by 17.4% to 7,776. 

  • Median sales price increased by 1.4% to $350,000. 

  • Average sales price increased by 0.9% to $405,952. 

  • New listings decreased by 15.3% to 9,822. 

  • Pending sales decreased by 10.2% to 7,345. 

  • Days on the market increased by 20.8% to 29. 

  • Homes for sale decreased by 9.3% to 12,067. 

In June, closed sales declined in 11 out of 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 17.4% year-over-year. Notably, the Upper MN Valley region showed a strong increase of 20%, and the Northwest followed suit, with its closed sales improved by nearly 15% when compared to last June. The largest declines were reported in North Central at 23.1%, Arrowhead at 22.4, and East Central at 22.3%. See the chart below for more.  

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.  

#MNRPressRelease 

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