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August 2022 Housing Report

Interest rates and inflation give buyers pause

MINNEAPOLIS (September 13, 2022) — In August, closed sales were down 17% compared to a year ago, with 8,256 transactions across the state. New listings followed the cooling trend, falling 17.9% compared to last August even as the total number of homes for sale increased by 2% to 13,271. This bumped up the supply of homes on the market to 1.9 months, an 18.8% gain over last year. Although the median sales price increased 4.4% to $330,000, sellers were receiving slightly less than their asking price, down 2.2% to 99.3%. Homes were sitting longer, too, with days on the market averaging 29 days, up 7.4% from August 2021.

“The trend toward more normal market conditions continued in August, signaling a more buyer-friendly environment,” said Chris Galler, CEO of Minnesota Realtors. “Although homes with desirable features in an affordable price range are still fueling competition, the frantic ‘drive-by buying’ of a year ago is over. With an increasing supply of properties to choose from, buyers are becoming more thoughtful and discerning, and less likely to rush a purchase. Rising interest rates and the broader inflationary environment has also dampened activity. Still, for buyers with the means to go forward, this is a good time to find the right home without the stress and pressure of a heated market.”

May be an image of text that says '13,271 Homes for Sale $330,000 Median Sales Price 2.0% vs Aug. 2021 4.4% vs Aug. 2021 Minnesota Realtors® August 2022 Housing Report 8,256 Closed Sales 29 Days on Market -17.0% vs Aug. 2021 7.4% vs Aug. 2021'
August year-over-year summary of key market indicators:
  • Closed sales decreased 17.0% to 8,256
  • Median sales price increased 4.4% to $330,000
  • Average sales price increased 4.6% to $383,759
  • New listings decreased 17.9% to 9,033
  • Pending sales decreased 19.0% to 7,592
  • Days on the market increased 7.4% to 29 days
  • Homes for sale increased 2.0% to 13,271

Closed Home Sales Across Minnesota by Region

In August, closed sales declined in 9 out of 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 17% year over year. Four regions reported increases: Northwest at 23.6%, Upper MN Valley at 7.1%, West Central at 7%, and Southwest at 0.8%. The smallest declines were seen in Headwaters at 0.8%, South Central at 2.1%, and North Central at 9.9%. The largest declines were reported in East Central at 19.8%, 7-County Twin Cities at 20.1% and Central at 26.2%. See the chart below for more details comparing closed home sales for August 2022 to August 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, on
which MAR & SPAAR local associations report

View full regional and county reports here.

View statewide report here.

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Basement Remodel

A finished basement can make your home more spacious, livable, and enjoyable. It can also add dollar-value for eventual resale. But before you start planning where to place your home movie theater and speak-easy style wet bar, there are four important things to consider. 

1. Remodeling is Riskier

 in Older Basements 

In most cases, basements built before the mid-1990s were not designed for use as living spaces. Generally, the foundations are not waterproof, and there is no vapor barrier beneath the concrete flooring. That creates high humidity levels and greater probability of flooding from snowmelt and rainstorms. This doesn’t mean finishing your basement is impossible, but you should definitely check your insurance before getting your project underway. 

2. Wet Soil Conditions 

A high-water table and poor drainage around the foundation can cause water to pool, and eventually push through openings in the concrete. Even if there are no cracks or holes, water can penetrate porous concrete and greatly elevate humidity. The effects of this more subtle intrusion can be seen in tell-tale white stains in the concrete. These are salt deposits left behind by evaporating water. The phenomenon is called efflorescence.  

3. Rainy Climate 

If you live in an area prone to big snow melt, soaking spring rains, or violent summer storms, you need to factor this into your plans. Inevitably, there will be a weather event that overwhelms systems to designed to prevent or mitigate water intrusion. 

4. Intended Use 

Are you looking for a casual “man cave” or a simple recreation area for the kids? Or do you envision a fully livable space with bedrooms, bathrooms, kitchen, and entertainment area? How you execute your remodel should be framed around the potential for water intrusion. In the words of Jeff Thorman, general contractor and host of Home Renovision on YouTube: “The best investment for a basement is one you can afford to lose.” 

Keeping Your Basement High and Dry

Fortunately, there are numerous ways to prevent or mitigate water intrusion. While none of these solutions can overcome poor construction or catastrophic flood events, they can help make a moderately damp basement into a space that’s comfortable and dry. 

Install a sump pump 

Most modern basements have built-in sump pumps, but they can certainly be installed in older dwellings. To function optimally, the pump should be fitted in a basin beneath the concrete that is 18 inches in diameter and two feet deep. This will hold up to 20 gallons of water. Investing in a high-quality cast-iron model is well worth the cost because cheaper models are more likely to fail. Your pump should have a mechanical float switch that kicks it on when water rises and turns it off when levels fall. For areas with high water tables and heavy seasonal rains, a battery-operated backup pump is highly recommended. 

Invest in a high-quality d

If humidity levels in your basement regularly hit 50% and higher, a dehumidifier greatly improves the air quality and prevents the growth of mold, mildew and fungus. It can also prevent long-term rot and structural damage to flooring and framing.  


Simple floor-stand models are helpful in the short term but are not a permanent solution. To ensure optimal air quality in a humid basement, you’ll need a dehumidifying ventilator air exchanger installed in your HVAC system. These units automatically keep humidity levels between 30 to 50% and vent moist air out of your house. In tightly sealed newer homes, they also prevent the buildup of potentially noxious gases. 

Build a Subfloor

Whether you have an old basement never intended for habitation, or a modern one with a water-sealed, back-filled foundation, building a subfloor is an excellent way to manage the inevitable moisture intrusion.  


Constructed from wooden panels lined with dimpled, waterproof membranes, subflooring provides a vapor barrier that mixes air and water, helping it evaporate or channel to a drain. An insulated variety of subflooring also keeps the cold at bay, making the living space easier on bare feet. 


Ideally, any framing for walls should be constructed directly on top of the subfloor. That’s because any beams in direct contact with cement are vulnerable to moisture damage. 


Lastly, if you want wood floors in your new basement paradise, you’ll need to lay another layer of plywood on top of the subfloor. Otherwise, it won’t have the structural integrity required.


Learn more about basement remodeling 

Obviously, there’s a lot more to consider when finishing your basement, from plumbing and electrical to aesthetics and design. Continue your education by reading these articles: 


The Pros and Cons of Finishing Your Unfinished Basement 


10 Things to Consider Before Finishing Your Basement 


How to Plan a Finished Basement 


Building a Dry Basement 


For a sobering look at the perils of finishing a basement, check out this video from Home Renovision: Thinking About Finishing Your Basement? Watch This First! 

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Maintaining Your Investment

If you’re a homeowner, it’s almost certain that your home is the most valuable asset you will ever own. That’s why homeownership is often referred to as an investment. As any savvy investor will tell you, the key to success is protecting your investment.

The Essential


Although there are hundreds of ways to preserve your home’s value, there are a few essentials you must do regularly. The first, and perhaps most crucial, is the foundation. A bad foundation spells big trouble. This is especially important in Minnesota, where water intrusion can be a perennial problem for homeowners.

Good maintenance begins with a simple foundation check you can do yourself. Walk both the exterior and interior of your home and look for signs of cracking, bulging, or uneven surfaces. If you suspect there may be an issue, it’s advisable to have a professional assessment.


You should inspect and maintain your home’s roof annually (at least). You can check for damage by looking for “impressions”—small-to-medium sized dark spots—which are usually a tell-tale sign of hail damage. If you suspect hail or any other type of damage, it’s worth having a specialist come out to inspect your roof.

Additionally, having a home insurance policy with roof-replacement coverage is advisable. In the event of a storm that causes roof damage, which is not uncommon in Minnesota, a good insurance policy can cover most of the cost to replace your home’s roof—potentially saving you tens of thousands of dollars.

Furnace & AC

Your HVAC system should be regularly checked and serviced. If and when it comes time to sell your home, the furnace and the air conditioning are two things prospective buyers are sure to ask about. Having each system checked annually is relatively inexpensive—you can usually have your AC and furnace checked for less than $100 total (plus you can usually find some deals if you shop around).

Maintenance throughout Your Home

With those bigger ticket items covered, the list of things to maintain in your home is seemingly endless. What you focus on depends in part on the location, type, age, and size of your home. With that in mind, refer to this list, organized by area, of things that should be regularly checked and maintained. Unless otherwise noted, these tasks should be performed annually.

  • Inspect siding for signs of wear or damage
  • Clean gutters twice a year—typically best to do in the spring and late fall once leaves have dropped
  • Inspect chimney and dryer vent to ensure proper ventilation
  • Check flashing between windows and doors—replace if not intact
  • Drain outdoor hoses and faucets in the fall
  • Clean kitchen range hood
  • Clean oven at least twice a year
  • Inspect dishwasher hose and drainage
  • Check sink drainage
  • Clean refrigerator and ensure temp settings are functioning properly (check items toward back of fridge for signs of freezing)
  • Check sink and bath/shower drainage
  • Check the shut off valve/supply on all toilets
  • Inspect shower/tub for signs of cracking
  • Check grout between tiles and re-grout if there are signs of deterioration
Living Rooms and Bedrooms
  • Test electrical outlets
  • Test carbon monoxide/smoke alarms, replace batteries if necessary
  • Inspect interior window and doors for signs of draft
  • Clean screens on windows/storm doors
  • Replace furnace filters at least quarterly
  • Check sump pump to ensure proper function
  • Clean dehumidifiers
  • Inspect hot water heater
  • Check for any signs of water intrusion (regularly during non-winter months)

While this list is by no means exhaustive, performing these checks and following up with required maintenance will protect the value of your home, and shield you from the time and expense of major repair projects further down the road.