MINNEAPOLIS (June 10, 2022) — The supply of homes coming on the market rose in May, with new listings up 3.6% compared to a year ago. Across the state, there were 10,408 homes for sale, a 4.8% rise over May 2021. Even so, closed sales were down 6.5% compared to last year as the median sales price increased 10.2% to $341,500. Overall, there was a 1.4-month supply of homes on the market, up almost 17% from the year before. Even though sales were down, competition for properties was heated. Sellers received an average 103.2% of the asking price, a 0.3% increase over last year.“The increase in new listings and higher levels of inventory is encouraging for buyers coming into the market,” said Chris Galler, CEO of Minnesota Realtors. “We should remember that the decline in closed sales compares to the unusually heated environment of 2021. What we’re seeing is aligned with historical norms for this time of year. However, it is still difficult for first-time homebuyers to break in. Higher interest rates, and inflationary pressures in the wider economy are taking a toll on this group. Buyers who are successfully closing on properties can leverage more financial resources to compete. The fact that homes regularly sell for more than the asking price is drawing more sellers into the market. This trend is likely to continue playing out for the remainder of the 2022 selling season.”
May year-over-year summary of key market indicators:
- Closed sales decreased 6.5% to 7,622
- Median sales price increased 10.2% to $341,500
- Average sales price increased 8.8% to $393,572
- New listings increased 3.6% to 11,380
- Pending sales decreased 12.0% to 8,577
- Days on the market decreased 10.3% to 26 days
- Homes for sale increased 4.8% to 10,408
Closed Home Sales Across Minnesota by Region
In May, closed sales declined in 11 out of 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 6.5% year over year. Two regions reported increases: Northwest at 19.4%, and Southeast at 3.5%. The smallest declines were seen in Upper MN Valley at 2.4%, Headwaters at 3.2%, and Southwest at 8.9%. The largest declines were reported in Arrowhead at 20.3%, West Central at 22.0%, and Southwest Central at 25.7%. See the chart below for more details comparing closed home sales for May 2022 to May 2021.
The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, onwhich MAR & SPAAR local associations report.