During July, typically the busiest buying and selling time in Minnesota, there were less homes for those looking to buy. With only 10,889 new listings, a 7.9% decrease over the same time last year; buyers had 28,401 properties available statewide to choose from. In July 2015, there were over 33,000 homes available.
The lack of inventory and competitive nature of the market is having an effect on the sales prices as well. The median sales price in July was at $215,900 – an 8% increase. The average sales price was up 4.3% statewide to $249,353.
With the lack of inventory, homes are selling quickly. Homes are selling in less than two months – approximately 55 days – which is a 12.7% decrease over July 2015. Buyers are forced to make quick decisions, sometimes offering more than the list price in order to secure the purchase.
“With less homes available we are seeing the closed and pending sales numbers decrease as we move through the summer months,” said Chris Galler, CEO of the Minnesota REALTORS®. “However, prices are going up due to the competitive nature of the marketplace.”
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The Minnesota 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.