Minnesota Housing Market Showing Signs of Continued Recovery
As Minnesota REALTORS® prepare for a busy summer housing season, Minnesota’s housing market is showing signs of a continued recovery. The newest housing report from the Minnesota Association of REALTORS® shows strong gains in median sales prices and homes on the market for fewer days before being sold.
Statewide median sales prices were up again in March compared to this time last year. The median sales price was up to $135,000 in March 2012. That’s an increase of 7.1% compared to March 2011. Median sales prices are also up more than 3% year-to-date.
Closed sales are another key indicator of how healthy a housing market is. In Minnesota, closed sales were up 7.5% in March 2012 compared to the year before and up 10.8% year-to-date. Ten of the state’s 13 regions saw increases in closed sales in March, compared to 2011.
“The newest housing numbers reflect what we’re seeing in the field. The market in Minnesota is continuing to rebound and recover,” said Chris Galler, CEO of the Minnesota Association of REALTORS®. “Prices are of course still a big area for improvement, but when we take out distressed properties we’re seeing significant increases in what homes are selling for.”
Median Sales Price: March 2012 compared to March 2011
- Statewide: + 7.1%
- 7 County Metro Region: +8.1%
- Arrowhead Region: -7.5%
- Central Region: +4.1%
- East Central Region: -12.4%
- Headwaters Region: -20.1%
- North Central Region: +6.5%
- Northwest Region: +58%
- South Central Region: +3.4%
- Southeast Region: +10.9%
- Southwest Central Region: +15.6%
- Southwest Region: -25.2%
- Upper MN Valley Region: -31.1%
- West Central Region: +24.6%
Homes sold a little faster in March 2012 compared to March 2011. Statewide, the average “days on market until sale” was down 3.5% to 110 days. Homeowners continued to receive more of their original asking prices as well. In March 2012, sellers received nearly 91% of their original asking price – that’s up 3.4% from this time last year.
“We are expecting the spring and summer months to be a busy time for the Minnesota housing market,” said June Wiener, President of the Minnesota Association of REALTORS®. “Homes that are in good shape and priced competitively are selling. This is a great time for people to upgrade to a bigger home. Thanks to near record-low interest rates it’s also a perfect time to become a first-time homeowner.”
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry.