Number of new listings continue to rise during the month of May
Despite the gloomy weather, the housing market continues to shine. According to the latest report from the Minnesota Association of REALTORSÒ, numbers are reflecting a positive trend in the market. New listings have risen 2,062 since last May. Closed sales are similarly trending upwards with a 3.8 percent increase with an average of 79 days on the market.
Reflecting economic principles, the higher the supply the higher the price. An 18.1 percent increase in new listings has resulted in the median sales price maintaining its steady growth. Statewide sales prices have increased from $153,000 to $172,513, a 12.8 percent increase as homeowners receive 95.5 percent of their original price.
“If you’re in the market for a new home, now is the time to buy,” said Jim Cormier, President of the Minnesota Association of REALTORS ®. “Mortgage rates are historically low. However, indicators show this will change in the upcoming months as interest rates slowly increase. If you buy now you can still get a great home with these low interest rates.”
High median sale prices also indicate low inventory. There are buyers for the rising market, but a lack of inventory to fit their need. The supply for May shows an 11.5 percent decrease from this time last year.
Chris Galler, CEO of the Minnesota Association of REALTORS® believes the increase in new listings is a good sign. “We hope to see this trend continue as we get deeper into the busy summer selling months,” said Galler. “Potential buyers and sellers should take advantage of the solid housing market we are currently in.”
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.