Median Home Sale Price Hits $312,500

Median Home Sale Price Hits $312,500

Demand is strong, but inventory of homes for sale is down sharply.

Though the overall economy may be bumpy amid the pandemic, the Twin Cities housing market seems to be firing on all cylinders. Buyer demand is strong, but the inventory of homes for sale is low. Combined, those factors are pushing up prices.

For July, the overall median sale price hit $312,500 – a 10.4 percent increase from a year ago.

The latest statistics for the 16-county metro area were released Thursday by the Minneapolis Area Realtors and the Saint Paul Area Association of Realtors. The median sale price for June was $305,000.

The number of signed purchase agreements in July was up 10.3 percent from a year ago and marked the highest number of purchase agreements for the month on records going back to 2003.

On average, sellers received 100.1 percent of their original list price when selling homes. That stands as the second highest number for percent of original list price received since 2003.

“With interest rates at record lows, in some cases below 3 percent, we are experiencing strong demand from buyers to lock in their purchases,” said Patrick Ruble, president of the Saint Paul Area Association of Realtors, in a statement. “If not for the pandemic, some of these accepted offers in July that set new records might have taken place in May or June.”

Buyers and realtors alike both wish that there were more homes up for sale. The inventory of homes for sale has dropped 28 percent compared to a year ago.