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.
VIDEO DATA SOURCE:
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!
STAR TRIBUNE - JANUARY 24
Twin Cities home sales at a 20-year high,
listings at a 20-year low
The residential real estate market was so tight in 2021
that the average sale price rose 11%.
Home sales in the Twin Cities last year reached a 20-year high despite a 20-year low in listings. Put together, the two extremes led to a double-digit increase in home prices.
Throughout 2021, buyers closed on 66,319 properties, a 2.7% increase over 2020, according to a year-end sales report from the Minneapolis Area Realtors (MAR) and the St. Paul Association of Realtors (SPAAR).
That marked the fourth year of annual sales gain for the housing market in the Twin Cities, defying the pressure on the region's broader economy from the pandemic.
At the same time sellers listed 75,536 properties, slightly fewer than in 2020. Comparing supply and demand figures, buyers were left with 26% fewer options than they had the year before.
CLICK HERE TO READ COMPLETE STAR TRIBUNE ARTICLE
KARE 11 NEWS
FOX 9 NEWS
The number of homes for sale is down 22.2% from just a year ago. It's no surprise, then, that the number closed sales is down (but only by 4.1%). That means more buyers per listing, so houses are on the market for a shorter time and prices are going up.
This pressure will continue to raise home values even though mortgage interest rates seem are sure to go up in 2022. If you're looking to buy, it's time to get started before the number of buyers and interest rates increase.
Let's connect and see if we can get the ball rolling toward finding and buying your next home or cabin.
READ MORE ABOUT THE MINNESOTA HOUSING MARKET
The supply of homes continues to be very low. This is causing the median sales price to increase and lowers the number of days a house is on the market. According to AXIOS NEWS, as of November 12, the number of days houses are on the market is now the lowest it has been since 1989.
What does this mean for sellers? Your house is likely to sell fairly quickly and you should get a good price for the property you're selling. With current low mortgage interest rates and a low supply of homes, this is a great time to sell.
What does this mean for buyers? Expect to compete with other offers. Understand that purchase offers will need to be very strong (competitive purchase price and reduced contingencies/demands). Prepare yourself for making several offers before you get once accepted.
There are pros and cons to every market, but with the caring help and expert advice of a good Realtor® and brokerage, you can still make the move and find the house you need. I'm ready to help you, and with me you also get the professional support and expertise of the entire Anderson Realty team.
Let's set up a time to talk about your plans, answer your questions, and get thing rolling for your situation.
October closed sales dropped 16.2% compared to the previous October, marking a return to a more typical seasonal decline. This was reflected in the number of homes for sale, which shrank 18.6% over last year, with just 11,696 properties on the market statewide.
New listings sank 10.2% to 8,428. Overall, there was only 1.5 months of inventory available, down 21.1% from a year ago.
Buyers who remained active continued to compete aggressively for homes, pushing the median sales price up 8.2% to $308,500. On average, sellers were receiving 99.7% of their asking price, an increase of 0.4% above last October.
When buying or selling a home, it's important to understand the market and gain helpful insights to help you achieve the best results.