Minnesota Home Sales Up 16.2 Percent
Home sales are not just strong in the Twin Cities metro area. The Minnesota Realtors group says that sales are strong across the state.
The statewide median sales price climbed 10.9 percent to $272,000 compared to January 2020. The average sale price was up 8.4 percent to $310,785.
Year-over-year closed sales were up a robust 16.2 percent and pending home sales were up 5.2 percent.
The biggest challenge remains the slim inventory of houses for sale. New listings dropped 12.1 percent and the total number of homes for sale was down sharply, dropping 48.3 percent compared to a year ago.
“January was still very much a seller’s market. Heightened demand was met with a decline in new listings, exacerbating the impact of historically low inventory in a market where consumers are primed to buy,” said Chris Galler, CEO of Minnesota Realtors, in a statement. “With the shifts in lifestyle and working habits brought on by the pandemic, people are hungry for space. As long as interest rates remain low, this trend is likely to continue. As spring approaches, we are likely to see another very hot selling season.”
Minnesota Realtors slices the state up into 13 different regions. For heart of the Twin Cities, Minnesota Realtors uses the historic, seven-county definition of the metro. The Minneapolis Area Realtors and St. Paul Area Association of Realtors uses the much wider 16-county area, which is the official Minneapolis-St. Paul-Bloomington statistical area as defined by the U.S. Census Bureau.
According to Minnesota Realtors, 11 of the state’s 13 regions posted double-digit gains for year-over-year closed sales.
The biggest gains were all in northern Minnesota:
- Northwest: 4%
- Headwaters: 4%
- Arrowhead: 3%
The seven-county Twin Cities metro ranked 11th by that measure, with closed sales up 13.8 percent compared to a year ago.
Minnesota Realtors found the statewide average for closed sales up 16.2 percent.