All Treats and No Tricks for Minnesota’s Housing Market in October
November 20, 2019
A chilly and wet October couldn’t spoil the Halloween spirit for prospective homebuyers, as possible homebuyers found more treats on the market than tricks.
New listings surged onto the market last month, surpassing the October 2018 mark by three percent. With more than 8,700 new listings coming to market, with six of the seven metro counties saw positive growth (Carver County listings retreated 16.3%). Strong listing data from the Rochester-area also helped propel statewide statistics higher and pushed Olmsted County to 22.5% growth in October. “We typically see a rapid decline in listings as we enter the fall season. Even with 2019’s wet and cold weather, we are keeping pace with 2018 statistics, which is surprising when considering that overall inventory continues to be noticably lower,” said Minnesota REALTORS® President Matt Loskota.
As new listings hit the market, they came off just as fast. Average days left on the market fell in October, to an average of 48 days, almost 10% lower than this time last year. As homes spent fewer days having open houses and showings, more buyers closed on properties, with October closings finishing 1.3% higher than 2018 and bringing the year-to-date gap to just under one-half of one percent behind last year.
Median sales prices continued their seasonal withdrawal, falling to the lowest point since March 2019, $250,000 statewide, but finishing 4.6% higher than October 2018. Across the metro, counties reported strong sales price data, with Washington County leading the pack just north of $334,000. Carver and Scott counties rounded out the $300,000+ club, with Hennepin, Dakota, and Anoka counties close behind. Statewide, eleven of Minnesota’s thirteen economic development regions saw median sales prices climb over the same period last year, with the Headwaters and West Central Regions being outliers, experiencing minor declines.
Housing affordability climbed in October with the Housing Affordability Index registering a reading of 173, the highest level since February 2018. Fueled by steady wage growth, median sales prices leveling out, and consistenly low interest ratees, prospective homebuyers are experiencing renewed financial confidence when purchasing a home.
Minnesota’s full October 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.