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December 2021 Housing Report

Competition for scarce stock pushes median price up
MINNEAPOLIS (January 12, 2022)
 — Marking a chilly end to a hot year in the Minnesota housing market, closed sales of residential homes were down 4.0% compared to December 2020. As new listings sank 14.3% over the previous year, buyers continued chasing diminishing inventory, driving up the median sales price by 8.0% to $300,000. The average home sold within just 36 days, that is six days faster than the 42-day average in December 2020. Sellers were still well positioned to benefit from buyer demand, receiving 98.7% of their asking price, a 0.2% increase over last December. As the year closed, there was barely a month’s supply of homes in the state’s housing stock—down nearly 25% from December 2020.“As 2021 ends, we see the return of a normal seasonal cycle. Gaps compared with the previous year reflect the remarkably high volume of sales in December 2020. Seen in the larger historical context, 2021 ended on a high and healthy note,” said Chris Galler, CEO of Minnesota Realtors. “The increasing median and average price for homes reflects the fact that buyers are still actively competing for properties. Limited inventory will continue for the foreseeable future due to escalating construction costs, labor and materials shortages, zoning requirements and regulatory burdens. As buyer demand increases, home prices will rise. Even if interest rates go up in the spring, these initial increases are unlikely to diminish Minnesotans’ appetite for buying homes in 2022.”

December year-over-year summary of key market indicators:

  • Closed sales decreased 4.0% to 7,137
  • Median sales price increased 8.0% to $300,000
  • Average sales price increased 9.4% to $351,135
  • New listings decreased 14.3% to 3,591
  • Pending sales decreased 12.4% to 4,595
  • Days on the market decreased 16.3% to 36 days
  • Homes for sale decreased 24.5% to 7,121

Closed Home Sales Across Minnesota by Region

In December, closed sales declined in nine regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 4.0% year over year. Four regions reported increases, with three areas marking double-digit gains: South Central at 22.1%Northwest at 14.0% and West Central at 10.2%. By contrast, four regions marked double-digit closed home sale declines: Headwaters down 20.0%, Southwest down 19.4%, Southwest Central down 15.6%, and Arrowhead down 14.6%. See the chart below for more details comparing closed home sales for December 2021 to December 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
.
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5 Radon Facts

Although Minnesota is blessed with an abundance of clean air and water, a silent hazard lurks in the state’s rocks and soil. Produced from decaying uranium and radium, radon gas is present in Minnesota homes at three times the average level in the United States. Fortunately, steps can be taken to detect and mitigate.

Following are five facts about radon, and some resources for taking action.

1. What is Radon?
An odorless, colorless, radioactive gas that is a widespread health hazard in Minnesota.

2. Is Radon Bad for Health?
According to the U.S. Environmental Protection Agency (EPA), radon exposure causes 21,000 lung cancer deaths a year. 40% of Minnesota’s homes have elevated levels of the gas.

3. All Homeowners Should Test for Radon
Although the Minnesota Department of Health (MNDOH) recommends that all homeowners test for radon, it is not legally required. According to the EPA, radon levels of 4.0 picocuries (pCi/L) and above are hazardous to human health.

4. Radon Mitigation Systems Are Highly Effective

If testing reveals elevated levels of radon, installing a mitigation system is a highly effective way to reduce the threat. However, there are no federal or state laws requiring homeowners to do so.

5. Home Sellers Must Disclose the Presence of Radon

The Minnesota Radon Awareness Act requires homeowners to disclose any knowledge of radon concentrations in writing to any potential buyer. 

What You Need to Know About Radon Testing and Mitigation 

Testers must be licensed

As of January 2019, a new Minnesota law required all professional radon testers to get a state license and abide by stringent testing guidelines. 

What happens during a professional radon test?

The Minnesota Radon Licensing Act requires radon-testing professionals “to produce accurate, defensible, and reproducible test results.” For the most precise reading, separate tests are performed for each unique foundation type on your property: 

  • Basement 
  • Crawlspaces 
  • Slab-on-grade spaces below enclosed porch
  • Other areas as required 

Radon testers also must produce detailed reports about the type of equipment used, specifics about testing locations, internal and external environmental conditions during the test, and other factors. 

How much does a radon mitigation system cost?

When dangerous levels are discovered, MNDOH highly recommends installing a radon-mitigation system. These systems cost from $1,200 to $2,500 and can be installed by one of the nationally certified radon-mitigation professionals listed on MNDOH’s Radon Service Providers page. 

To learn more, visit the Radon page on the MNDOH website. 

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November 2021 Housing Report

By MNR News posted 12-13-2021
Median price rises as buyers compete for scarce housing stock

MINNEAPOLIS (December 13, 2021) — Closed sales of residential homes were down 4.1% compared to November 2020, continuing a year-end cooling trend in the Minnesota housing market. In an indicator that buyers are still actively pursuing purchases, the median sales price rose 7.2% to $304,500. At the same time, days on market—the average time a property is available between listing and closing—shrank 13.2% to 33 days. New listings inched up 2.1% to 5,645 properties. Sellers remained in a strong position, receiving 99% of their asking price, a statistic that remains unchanged from last year. Overall, the number of homes for sale dropped 22.2% to just 9,355 units. This leaves just 1.2 month’s supply of properties on the market, down 20% from last November.

“November’s decline in closed sales marks a return to seasonal normality. Despite comparisons to the unusually high number of sales a year ago, this month’s closed sales reflect a healthy and robust market,” said Chris Galler, CEO of Minnesota Realtors. “Buyers are still highly motivated and willing to meet or exceed the asking price. Inventory is a persistent challenge, which is likely to continue tempering the market when the 2022 sales season gets under way.”

November year-over-year summary of key market indicators:

  • Closed sales decreased 4.1% to 7,761
  • Median sales price increased 7.2% to $304,500
  • Average sales price increased 7.3% to $351,921
  • New listings increased 2.1% to 5,645
  • Pending sales increased 4.0% to 6,662
  • Days on the market decreased 13.2% to 33 days
  • Homes for sale decreased 22.2% to 9,355

Closed Home Sales Across Minnesota by Region

In December, closed sales declined in seven regions compared to a year ago, bringing Minnesota’s average to -4.1%. Bucking the trend, five regions reported increases, with two areas marking double-digit gains: Southwest at 15.5%, and Upper MN Valley at 13.3%. Southwest Central saw the largest decline with closed sales at -20.9%. Two other regions with significant declines were West Central at -16.2%, and South Central at -11.2%. See the chart below for more details comparing closed home sales for November 2021 to November 2020.

November housing report statistics

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.

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2022 Pantone Color Palette

By MNR News posted 12-10-2021

A fresh coat of paint can cover a multitude of scuffs and revitalize even the dreariest space. For many new homeowners, painting is the first step in transforming a house into a home.

Of course, there’s a lot more to painting than breaking out the brushes and rollers. Choosing the right color scheme is key to creating a living space that reflects your taste and aesthetics while complimenting the character of your home. Here are some tips to help you get pro results from your DIY painting projects.

Study Your Space

Let the design, layout, and age of your home guide your color choices. A Victorian-era house might call for the vibrant colors of a 19th century “painted lady.” A sleek modernist structure could be better suited to muted shades with eye-popping accents. Be sure to consider the light, too. A wall of orange-peach coral in a bright, sunlit room will have dramatically different characteristics than the same shade in a room that relies on artificial light. The size and shape of each room also influences color. Small rooms tend to “shrink” when colors are dark, while wider more cavernous spaces can feel cozier and more intimate when painted with darker shades. And don’t forget to consider how the rooms relate to each other. Open-plan homes with less defined living areas require more tightly coordinated color palettes those with more enclosed spaces.

Choose Your Palette

Once you know your space, it’s time to find the colors that will define it. From Architectural Digest to Pinterest there are myriad sources to inspire you. Whether you tear pages from magazines or build a carefully curated folder of sources from the web, find color palettes that create the mood you want to cultivate in each room. Perhaps you like neutral tones with punches of color. Or maybe you lean toward bold contrasts. It’s worth taking the time to explore. The more precisely you pinpoint your preferences, the more satisfying the result will be.

Coordinate Your Fabrics

Before you run to the paint store with your color palette, be sure to consider the furnishings, rugs, and upholstery that will be part of the final mix. Do those powder blue curtains harmonize with the seafoam green you envision on the walls? Will the brown couch disappear into the maroon wall behind it? Is the finished room a warm and cozy nest accented with floral pillows and crochet blankets? Or perhaps you’ve chosen industrial grays and blacks to set the stage for a suite of mid-century modern furnishings with gleaming chrome accents. When you put it all together, the pairing of paints and textiles will exceed the sum of their parts, creating a mood and atmosphere that is uniquely your own.

Pop Your Colors with Accents

When thoughtfully deployed, accent colors pull a room together, unifying its range of colors and textures. When choosing accents, consider the hues in rugs, furnishings, and other textiles. Lifting one of those colors on to a wall can harmonize and fuse the most disparate elements. If your space is large and open, consider creating an accent from the palette of a neighboring area. Whether contrasting and bold, whimsical and playful, or tastefully understated, accents complete a space and set the tone for living in it.

Expand Your Color IQ

Just as the color spectrum contains a multitude of possibilities, there are nearly endless resources for learning more. This article from Houselogic is a good place to begin expanding your palette of knowledge. A Brilliant Way to Create a Color Scheme for Your Dream Home.

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3 Projects To Boost Your ROI

house, floor, interior, home, residence, property, sink, room, apartment, modern, interior design, bathtub, bathroom, design, tub, estate, contemporary, suite, shower, real estate, flooring, plumbing fixture, Free Images In PxHere

Looking for projects with a greater return of investments in your home? Here are 3 projects to that can boost  the value of your home.

Improving Energy Efficiency
Installing a new smart thermostat, or switching to LED lights are a few simple improvements. Some other larger investments to look at are windows, furnace, and air-conditioning to help lower the heating and cooling costs for your home. improvements can vary widely.

Kitchen Updates 
Simple projects in your kitchen could be painting the cabinets, changing out the hardware, or even installing a new faucet. If your looking at a larger investment, cabinets, a new island , and new appliances go a long way yo update to your kitchen.

Bathroom Updates
A fresh coat of paint, changing out the faucet, and adding new towels or rugs are simple updates for the DIYer. More expensive projects would be replacing the shower or floor tile, new cabinets, and changing out the toilet. Depending on the investment, it will go a long way to help transform the space.

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October 2021 Housing Report

By MNR News posted 11-11-2021

Days on the market shorten as the median price rises on limited inventory

MINNEAPOLIS (November 10, 2021) — October closed sales dropped 16.2% compared to the previous October, marking a return to a more typical seasonal slow down across Minnesota. This shift was reflected in the number of homes for sale, which shrank 18.6% over last year, with just 11,696 properties on the market statewide. New listings sank 10.2% to 8,428. Overall, there was only 1.5 months of inventory available, down 21.1% from a year ago. Buyers who remained active continued to compete aggressively for homes, pushing the median sales price up 8.2% to $308,500. On average, sellers were receiving 99.7% of their asking price, an increase of 0.4% above last October.

“The extraordinary number of closed sales we saw in October 2020 was really a historic outlier. This month’s numbers are more closely aligned with expectations for the fall,” said Chris Galler, CEO of Minnesota Realtors. “Buyers who are still in the market are highly motivated to close, and willing to pay more. Interest rates remain low, so if the overall rate of inflation in the economy at large is kept in check, we will likely see resurging closed sales in the spring.”

October year-over-year summary of key market indicators:

  • Closed sales decreased 16.2% to 8,713
  • Median sales price increased 8.2% to $308,500
  • Average sales price increased 5.8% to $354,686
  • New listings decreased 10.2% to 8,428
  • Pending sales decreased 10.6% to 7,994
  • Days on the market decreased 23.1% to 30 days
  • Homes for sale decreased 18.6% to 11,696

Closed Home Sales Across Minnesota by Region

The Minnesota real estate market slowed in October, with closed sales down in 11 regions compared to October 2020. Two regions, Headwaters and Northwest, marked single-digit increases, while the rest of the state saw double-digit declines. In three regions, the drop in closed sales exceeded 20%: Arrowhead at -23.5; North Central at -21.3; and Upper MN Valley at -21.2%. See the chart below for more details comparing closed home sales for October 2021 to October 2020.

chart of the percentage of change from October 2020 closed sales by region


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.

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September 2021 Housing Report

By MNR News posted 10-13-2021

Buyers still chasing limited number of affordable homes

As the fall season arrived, September closed sales of residential homes in Minnesota declined 8.4% compared to last year. Correspondingly, new listings fell 8.5% over last year and pending sales were down 15.3%. Responding to the lean inventory, buyers competed for limited housing stock, reducing the average time homes stayed on the market to just 27 days, a 34.1% decrease over last September. Sellers received 100.4% of their asking price for homes, a 1.2% increase. The overall number of homes for sale shrank 19.8% to 12,618, and the months supply of homes was down 23.8% to only 1.6 months supply.

“Due to the extremely high number of closed sales in 2020, we’ve been expecting this year’s numbers to be lower for the last four months and the September numbers reflect that trend,” said Chris Galler, CEO of Minnesota Realtors. “So, while this year’s gains in closed sales may only be single digits, during a two-year period it’s been a gain of more than 20%, which is pretty astounding.”

Galler noted that looking back since 2019, the median home price has also averaged a double-digit increase, and continues to rise as demand outpaces supply.

September year-over-year summary of key market indicators:

  • Closed sales decreased 8.4% to 8,997
  • Median sales price increased 10.8% to $310,000
  • Average sales price increased 10.0% to $354,426
  • New listings decreased 8.5% to 9,957
  • Pending sales decreased 15.3% to 8,050
  • Days on the market decreased 34.1% to 27 days
  • Homes for sale decreased 19.8% to 12,618

Closed Home Sales Across Minnesota by Region

Closed sales were down across the state with 11 regions reporting declines compared to September 2020. In five regions, declines were in the single digits, including the seven-county Twin Cities which was down -6.7%. Eight regions saw double-digit declines, with the greatest declines in: Northwest at -27.9%, West Central at -18.5%, and East Central at -16.7%. See the chart below for more details comparing closed home sales for September 2021 to September 2020.

chart of closed home sales data

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.