Low Inventory Creates Competition in Minnesota Housing Market

Other Indicators Show Improvement

Two months into 2013, statewide numbers continue to show growth in the housing market for Minnesota, according to the latest housing report from the Minnesota Association of REALTORS®.

The median sales price has increased 14.2% from the same time last year.  Homeowners have seen this median value increase from $125,000 in February 2012 to $142,754 in the same period in 2013. Homeowners are receiving 91.9% of their original list price as sales prices trend upward. This is a 2.7% increase from 2012.

“These numbers continue to rise, which is good news for the homeowner who has been waiting to list their home,” said Christopher Galler, CEO of the Minnesota Association of REALTORS®. “The low inventory we are experiencing in Minnesota is driving these numbers up as buyers compete for what is available in the marketplace.”

New Listings Statewide

Northwest Region                 -15.6%
Headwaters Region              -34.1%
Arrowhead Region                -21.1%
West Central Region             -30.4%
North Central Region           -59.4%
Southwest Central Region   -12.4%
Upper MN Valley Region       0.0%
East Central Region              -15.7%
Central Region                        -5.0%
Southwest Region                  +6.0%
South Central Region            -7.7%
Southeast Region                   -5.9%
7-County Twin Cities            -10.1%

The real story right now is that new listings are down 15.2% from the same time last year.  Overall buyers are finding less choices in the marketplace. This is a reflection of the decrease in closed sales as well.

“REALTORS® in Minnesota are hoping that the buying and selling climate begins to take off as we enter the spring season,” said Jim Cormier, President of the MN Association of REALTORS®. “Mortgage rates are low, home values are going up and homes are selling quicker than they have in a few years – now we need inventory!”

Historic Inventory of Homes for Sale by Month
Listings are down 15.2% from the same time last year.

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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4 thoughts on “Low Inventory Creates Competition in Minnesota Housing Market

  1. When the market favors buyers people with hold selling till they can get a better return on their investment. Once the market moves to favor sellers more then the inventory will increase again driving prices back and forth. Overall it is a great outlook to this year with hopefully an incline in sales. The stock changes recently show we may be on the brink of a growth period.

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