Home Prices, Inventory Rise as Market
Activity Warms in June 
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. 

“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.”


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

• Closed sales: 7,776 (down 17.4%) 
• Median sales price: $350,000 (up 1.4%)
• Average sales price: $405,952 (up 0.9%)
• New listings: 9,822 (down 15.3%)
• Pending sales: 7,345 (down 10.2%)
• Days on the market: 29 (up 20.8%)
• Homes for sale: 12,067 (down 9.3%) 

Closed Sales and New Listings Slip in June
 
In June, closed sales of homes declined by nearly 14% compared to a year ago, with a total of 9,208 properties sold across the state. New listings were down 6.4% year-over-year even as the total number of homes for sale increased 8.2% to 12,298 properties.
 
Overall housing inventory increased significantly, up 21.4% over last June to 1.7 months’ supply of homes on the market. Despite softening activity relative to last year, consumer demand drove the median sales price up 6.2% to $345,000, and the average price increased 9% to $401,319. Sellers were still receiving an average of 102.5% of their asking price, although this marks a slight 0.7% decline compared to June of last year.
 
See the full June Housing Report here.

FROM MASHVISOR BLOG:
House values in the Minneapolis metro area have risen by 13.6% in the last year alone. However, for investing in real estate, since there is a limited amount of homes in Minneapolis, purchasers are sometimes compelled to compete, leading to higher prices and faster sales, which benefit sellers. In other words, based on the previous month’s major housing market statistics, demand outnumbers supply, providing sellers a price bargaining edge over buyers. As a result, there are fewer available properties than engaged buyers in the market.

• The average home value in the Minneapolis-St. Paul-Bloomington Metro area is $349,595, a 13.6% increase over the previous year.
• According to Zillow, they will grow 11.4% in 2022.
• Minneapolis home values have increased by 6.5% (current value = $321,732) and will still rise.
• Home values in Saint Paul have increased 10.7% (current = $275,264) and will still rise.

VIDEO DATA SOURCE:
https://www.corelogic.com/intelligence/homeowner-equity-insights/

Sales by Price Range:
The number of homes sold in the $500,001 and above price range rose 45.2 percent to 14,205 homes. Homes sold in the $100,000 and Below price range were down 22.4 percent to 3,552 homes.

List Price Received:
Sellers received, on average, 100.9 percent of their original list price at sale, a year-over-year improvement of 2.3 percent. The 2021 housing market was once again strong both locally and nationally. Inventory shortages and high buyer demand continued to push home prices higher, with multiple offers on a limited number of homes the common theme in most market segments.

This year looks to continue the trends seen in the last 18 months, pushing home prices higher still. As mortgage rates are likely to continue to rise over the year as well, housing affordability will remain an important factor to watch.

CLICK HERE TO READ VIEW OR DOWNLOAD FULL REPORT

In today's market, having a good REALTOR® is more important than ever. When I serve my clients, I bring persistence, negotiation skills, research tools, and a knowledge of the market. This helps me get the best results for my clients whether they are buying, selling, or both. Let's set up a time to talk about your real estate needs and see if I can be of service to you!