Twin Cities Homes Prices Hit Monthly Record High in July
The median sales price for a home in the Twin Cities hit a monthly record in July as inventory remained slim, according to data released Tuesday by the Minneapolis Area Association of Realtors (MAAR).
Compared to July of last year, the median sales price rose roughly 6 percent to $254,000 last month, continuing a 65-month streak of rising home prices in the 13-county metro area. That price, however, was down slightly from the all-time high median sales price hit in June ($259,000).
Meanwhile, the number of pending sales and closed sales both dipped slightly during the month, by about 1 percent and 2.5 percent, respectively.
Inventory has been pinched for years in the Twin Cities area with fewer new listings becoming available despite increasing demand. Just last month, new listings fell by about 4 percent year-over-year, while the number of homes for sale decreased by more than 18 percent—the second-largest inventory decline this year.
If no homes were put up for sale, the current inventory of housing options would bottom out in two-and-a-half months, MAAR said. Generally, five to six months of supply is considered a balanced market.
As a result of current market condition, buyers are being forced to bid high and fast.
Homes sold in July were on the market an average of 44 days, an 18.5 percent faster time-to-sale than a year ago. Likewise, sellers were receiving 99.2 percent of their original list price an average, a slight improvement year-over-year, as well.
“The fact that buyers are hardly phased by the lack of inventory speaks to the appeal of homeownership and of our region,” said Kath Hammerseng, president-elect of MAAR, in prepared remarks. “The current environment calls for additional patience, persistence and compromise, but Minnesotans are known for those traits.”