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Low Inventory Encourages Home Sales

April 22, 2013

Buyers compete as homes receive multiple offers.

Homebuyers kept Minnesota REALTORS® moving in the month of March.  The housing inventory is still trending low according to the latest monthly data compiled by the Minnesota Association of REALTORS® (MNAR). There were 2,245 less listings in March 2013 as compared to March 2012. At 11,784 listings, this is the lowest supply Minnesota has seen since 2005.

March had a 1.8 percent decrease in closed sales while average and median sales prices are at their highest levels over the same time in the last four years.

New Listings by Region

                                                                                 2012                                        2013                      Percent Change

Northwest Region                                                147                                             126                           -14.3%

Headwaters Region                                             229                                             142                           -38.0%

Arrowhead Region                                              861                                             672                           -22.0%

West Central Region                                           883                                             593                           -32.8%

North Central Region                                         992                                             417                           -58.0%

Southwest Central Region                                 251                                             201                           -19.9%

Upper Minnesota Valley Region                        66                                                66                              0.0%

East Central Region                                             393                                             347                           -11.7%

Central Region                                                      819                                             815                           -0.5%

Southwest Region                                                  96                                                87                            -9.4%

South Central Region                                          716                                             539                          -24.7%

Southeast Region                                             1,986                                         1,604                          -19.2%

7-County Twin Cities Region                        5,569                                         5,265                           -5.5%

Contracts closed on 6,219 properties during the month. The average sales price and median sales price increased 10.1 percent and 14.8 percent respectively within these closings. Statewide the average sales price is $184,473 and the median sales price is $155,000.

“The recent increase in activity in home buying and the low inventory available results in multiple offers and bidding wars on properties,” said MNAR President Jim Cormier with Building Sites, Inc.  “We are still in a seller’s market. If you have been considering listing your home, contact a REALTOR today.  There are many buyers out in the marketplace waiting for more properties to consider.”

Sellers are continuing to discover it takes less time than anticipated to sell their home. The average number of days between when a property is listed and when an offer is accepted is 96 days.  This is a 12.7 percent decrease from the same time last year.

Sellers are getting 93.2 percent of their original list price due to the decrease in inventory and shortened time on the market.  This is a 2.8 percent increase as compared to March 2012, and the highest it has been since January 2011.

“With renting at a premium and mortgage rates at an all time low, now is the time to join more than 75 million other Americans homeowners,” said Chris Galler, CEO of the MN Assn of REALTORS®.  “We want those in the market for a home to know that REALTORS are available to help with the largest purchase you may make in your life.”

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

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