In Minnesota, the August housing numbers continued to stay strong and keep REALTORS® busy during the last month of summer.
The pending and closed sales numbers continued to increase 6.7% and 9.0% respectively, which is representative of the positive early summer activity that we saw statewide. Sellers received 96.7% of the original list price and sold their homes in about 55 days. This is down 11.3% over the same time period in 2015.
The median sales price jumped 8.0% to $215,000, while the average sales price rose 6.2% to $252,329. The median sales price is the midpoint, indicating as many transactions above as below the stated price.
Inventory remains to be a problem and is still sitting at 16.4% less than the same time last year.
“There are still buyers in the marketplace taking advantage of the low interest rates that are still available,” said Chris Galler, CEO of the Minnesota REALTORS®. “Minnesota REALTORS® continue to be busy as we enter the fall market.”
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.
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.”
The month of June seemed to follow the Economics 101 rules of supply and demand. With new listings continuing to trend down 2.0% over the same time last year, anyone selling their home is selling it quickly, and finding the median and average sales prices climbing upward due to buyers not having much to choose from.
During June, homes for sale were selling in 54 days. This is an 11.5% decrease over 2015. Additionally, buyers are paying more for their purchases. The median sales price rose 6.1% to $218,500, and the average sales price jumped 4.5% to $243,548.
The closed and pending sales slowed down a bit in June. Closed sales ended up at 10,201 units and pending sales ended up at 8,911 units. This is down .4% and .6% respectively. These numbers still make for a very robust housing market throughout the state.
“The lack of inventory continues to be the issue in the marketplace that we hear the most about,” said Chris Galler, CEO of the Minnesota REALTORS®. “It is absolutely a seller’s market out there right now.”
It’s shaping up to be a busy summer in the Minnesota housing market. With new listings and homes for sale still trending down, the seller’s market we have will continue into the summer months. What does this mean? This means potential multiple offers on properties, which will drive the prices up.
During May, we saw a 7.9% and 5.9% increase in the Median and Average Sales price, respectively. The median sales price was at $214,700 which is the midpoint, indicating as many transactions above as below that price. The average sales price came in at $246,448.
Low inventory also means homes are going to sell quickly; and in May this was true. Homes were on the market 59 days, which was a 10.6% decrease over May of 2015.
Closed sales were up in May, as properties that were purchased in the spring of 2016 were finalized. Pending sales also rose 6.8% in May, which will translate into many closings during the summer months.
“We haven’t even hit the busiest summer housing months for Minnesota yet,” said Chris Galler, CEO of the Minnesota REALTORS®. “Buyers in the marketplace should contact a REALTOR® in their area in order to move quickly to put offers in on homes for sale.”
The story was still lack of listings for the month of April throughout the state. New listings were down 2.7% during April to 12,897 units over the same time last year. There were 25,737 home for sale though April, which is 14.4% less than April of 2015.
With the low inventory, homes are selling faster, and many with multiple offers. Homes are selling in approximately two months, which is a 12% decline over last April. With the multiple offers sometimes driving the prices up – the median and average sales prices were on the rise.
The median sales price jumped 7.2% to $209,000 while the average sales price rose 5.9% to $242,504. The median sales price is the midpoint, indicating as many transactions above as below the stated price.
Closed sales were up in April as properties that were purchased in early 2016 were finalized. Pending sales took a dip to -.9%, which is an indication of the lack of inventory and buyers making offers.
“The low inventory keeps the sellers in control when it comes to the marketplace,” said Chris Galler, CEO of the Minnesota REALTORS®. “Buyers have to act quickly in order to get the house they want.”
The mild winter weather has seeped into the housing market as well. February 2016, which is typically a time when homeowners start prepping their homes for spring sales, turned into a early seller’s market in Minnesota.
The pending sales were only up 3.8% to 5,628 units over last year. Closed sales were up 3.3% to 3,868 units over February 2015. This is still some of the surplus from the positive activity we saw in November and December. That number may slow down since the pending sales are running a little softer in the first months of the New Year.
The median sales price jumped 3.3% to $183,000, while the average sales price rose .3% to $220,347. The median sales price is the midpoint, indicating as many transactions above as below the stated price.
Even in the traditionally cold, slow winter real estate market, sellers were able to put a sold sign in their yard in 85 days. This is a 6.6% decrease, down from 91 days last year.
“Minnesota REALTORS® are reporting more market activity than in previous February markets,” said Chris Galler, CEO of the Minnesota REALTORS®. “With inventory still on the decline, sellers are in the driver’s seat right now when it comes to home sales.”
DOWNLOAD THE FEBRUARY 2016 MINNESOTA HOUSING REPORT – HERE
New homes on the market in January were down 7.7% over 2015. This is about 500 fewer homes available to potential homebuyers. With the lower number of listings, we could see a slowdown in sales as we move through the remaining winter months which are typically a quieter time for our real estate market.
The pending sales were only up 1.6% to 4,284 units over last year. However, closed sales were up 16.5% over January 2015. This is reflective of all of the positive activity we saw in November and December. That number may slow down since the pending sales are running a little softer in January.
The median sales price jumped 8.2% to $188,00, while the average sales price rose 6% to $228,585. The median sales price is the midpoint, indicating as many transactions above as below the stated price.
Even in the traditionally cold, slow real estate month after the holidays, sellers were able to put a sold sign in their yard in 79 days. This is a 12.2% decrease, down from 90 days last year.
“Minnesota REALTORS® are reporting strong market activity,” said Chris Galler, CEO of the Minnesota REALTORS®. “There are still buyers out there looking inventory as we state the new year.”
Download the January 2016 Minnesota Housing Report HERE
Find more information on the real estate industry in the
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