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Closed Sales Taper While Inventory Climbs Slightly in July

By MNR News posted 08-15-2023 12:55 PM

  
MINNEAPOLIS (August 15, 2023) — As the Minnesota selling season cooled, competition for homes remained warm in some areas of the state. In July, closed sales fell statewide by 19% over the same period last year, with 6,487 transactions. New listings dropped by close to 15% to 8,597 homes, compared to July 2022. Pending sales followed suit, down over 10%, further signaling a summer slowdown. Across Minnesota, inventory climbed to 2.3 months supply, with 12,805 homes for sale—though this number is down by 10.4% compared to this time last year.

The median home sales price increased about 1% to $342,995, and the average number of days a home sat on the market spiked to 28—a rise of 12% compared to last July. However, that is down one day compared to June’s metrics. Minnesota remains in what experts consider a seller’s market, with sellers receiving just over 100% of their original list price. While this is down marginally (0.9%) compared to July of 2022, it’s up compared to earlier this Spring, where more sellers were having to reduce their original list price in order to sell.

“Buyers had slightly more negotiating power in July, and sellers in some areas continued receiving multiple offers on properties—especially “move-in ready” homes—a key factor that propped up median home prices statewide. But competition began to slow to close out the month, as is typical during this season of our housing cycle.” said Emily Green, president of Minnesota Realtors. “Supply has steadily improved month-over-month, but it remains well short of what’s needed for a balanced market. Mortgage rates averaged over 6.8%, not dipping enough to bring more prospective sellers and buyers back to the market. We’re in a tight tug-of-war right now due to high demand and lower inventory.”

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

  • Closed sales decreased 19% to 6,487 

  • Median sales price increased 0.9% to $342,995 

  • Average sales price increased 2.9% to $403,918 

  • New listings decreased 14.6% to 8,597 

  • Pending sales decreased 10.1% to 6,610 

  • Days on the market increased 12% to 28  

  • Homes for sale decreased 10.4% to 12,805 

Closed Home Sales Across Minnesota by Region 

In July, closed sales declined in all 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 19% year over year. The smallest declines were seen in West Central at 2.1%, Southwest at 5.3%, and Headwaters at 8.5%. The largest declines were reported in Southwest Central at 34.2%, Central at 23% and North Central at 22.8%. See the chart below for more details comparing closed home sales for July 2023 to July 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. 

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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