Rise in new listings can’t match demand and plummeting supply
Closed sales were up +10.9% over last April as pending sales soared +32.0%, and new listings surged +18.2%, according to Minnesota Realtors® (MNR), the membership organization supporting all 22,000 Realtors in the state. But the rapidly heating market was tempered by the widening gap between buyer demand and available inventory. With just a one-month supply of housing inventory available, the number of homes for sale dropped 51.7% from 17,634 homes in April 2020 to only 8,519 homes this April. The median sales price hit $305,000, a +10.9% increase over last April, and days on market shriveled -25.0% as multiple offers on properties became the norm. On average, properties were selling for +102.1% of the original price, a 3.3% bump over 2020.
“The year-over-year growth is impressive given where we were last year with the pandemic shutting down activity and creating uncertainty in the market. With so many pending sales in the pipeline, Realtors are racing to keep up with what promises to be a record-breaking season,” said Chris Galler, CEO of Minnesota Realtors. “The ongoing inventory shortage is pushing values to unreachable heights and pricing many—especially first-time homebuyers— out of the market. As an industry, we need to expand ownership opportunities by making down payment assistance more readily available and lobbying for sensible regulations that allow developers to build more affordable housing stock. It would be a big win for those who so desperately want homes and an even bigger win for real estate and Minnesota’s entire economy.”
April year-over-year summary:
- Closed sales: +10.9% to 7,060
- Median sales price: +10.9% to $305,00
- Average sales price: +12.8% to $345,412
- New listings: +18.2% to 10,333
- Pending sales: +32.0% to 8,897
- Days on the market: -25.0% to 36 days
- Homes for sale: -51.7% to 8,519
Closed Home Sales Across Minnesota by Region
Eleven of the state’s 13 regions saw increases in closed sales compared to April 2020, with eight of those regions hitting double-digit growth. Two regions marking declines: Southwest Central with -.9% and Northwest slipping -6.9%. See the chart below for more details comparing April 2021 to April 2020.
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.