September Gains Recoup Yearly Shortfalls
October 25, 2019
Strong listing and sales data in September drove the Minnesota housing market upward, bringing it near 2018 levels through the year’s first three quarters.
Almost 10,000 new listings came into the market in September, representing a nearly 4% increase from one year ago. Across Minnesota’s 13 economic development regions, only one saw a year-to-year decrease in listings, while six enjoyed double digit increases in inventory and housing stock choices. Among the leaders was the Central Region, which covers Wright, Stearns, Sherburne, and Benton counties, posting a 10.8% increase in new listings, primarily in communities adjacent to the I-94 corridor.
In the metro, listing data remained mixed, with the north and east metro counties seeing growth and gain while the southern and westernmost counties retreated into negative territory. Carver County posted the steepest decline, with almost 10% fewer listings hitting the market in September than one year ago. “Strong market activity in September helped statewide listing and sales data recover from shortfalls earlier in the year and bring us in line with where we were at this point in 2018” said Minnesota REALTORS® President Matt Loskota.
Median Sales Prices continued their seasonal retreat, climbing 6.6% statewide over one year ago, finishing at $250,500, but down from peaks earlier in the selling season. September was the third consecutive monthly decline since reaching the all-time high of $264,400 in June. All metro counties posted sizable gains in September, with six of the seven posting record median sales price highs. Ramsey County remains the exception, decreasing slightly one August and remaining well below the state average and it’s metro partners.
As median prices begin to recede from summer highs, interest rates remain low and incomes continue to slowly rise, there is a silver lining for prospective buyers – increased market affordability. Minnesota’s Housing Affordability Index (HAI) bounced back noticably in September, registering at 170, the highest since March 2018 and 15% higher than the recent low mark of 148 in October 218. The HAI measures housing affordability in terms of the median household income and the amount of income needed to quality for median-priced homes under the prevailing interest rates.
Minnesota’s full September housing data report, including regional and county data, can be accessed HERE.
The Minnesota REALTORS® is the largest trade association in the state with more than 21,000 members. MNR is the voice for real estate in Minnesota.