Metro Home Prices Hit Median Sales Price of $342,500

Metro Home Prices Hit Median Sales Price of $342,500

Median time on the market? One week.

How high can home prices go? The latest statistics every month point to a clear trend: higher, higher, higher.

The median sales price for homes in the Twin Cities rose to $342,500 in May, a 16.1 percent increase compared to May 2020. That’s according to the latest numbers released Wednesday by the Minneapolis Area Realtors and the St. Paul Area Association of Realtors.

Pending sales were up 15.7 percent in May; closed sales were up 15.4 percent for the month.

How fast can homes sell? Once again, according to the trend in the statistics the answer is: faster, faster, faster.

During May homes were on the market for median of just seven days.

“Half of all listings in the Twin Cities have an accepted offer within a week,” said Tracy Baglio, president of the Saint Paul Area Association of Realtors, in a statement. “As the summer season begins to build, buyers need to continue to be prepared to make firm decisions and strong offers on a home.”

One reason that prices keep climbing is that there are more buyers than sellers in the current market. It has become routine for listings to generate multiple offers. In many cases, buyers are willing to waive inspections and contingencies in an effort to win the bidding battle.

According to the latest numbers, the Twin Cities has only a one-month supply of homes on the market for sale. A supply of four to six months is typically considered a balanced market.

Single-family home sales in the city of Minneapolis were up 42.1 percent in the city of Minneapolis and up 16.7 percent in St. Paul. Fears that people would completely abandon the core cities amid social unrest and other concerns have not been borne out by market statistics.

TCB’s sister publication Mpls.St.Paul Magazine recently took a closer look at some of the factors driving current real estate trends in the metro.