MINNEAPOLIS (January 11, 2023) — In December, closed sales fell almost 39% across the state compared to a year ago, marking 12 straight months of declines. New listings were 17% fewer than last year with 3,031 new properties coming on the market in December. With buyer demand slipping, homes were staying on the market longer, up 24.3% to 46 days. Sellers were accepting offers that averaged about 96% of the home’s original asking price. The overall number of homes for sale was up 15.3% compared to last year rising to 9,204 properties and putting a month and half of inventory in the pipeline, which is a 50% increase over December 2021. Despite decreased buyer activity, the median sales price notched up 1.7% to $305,000.“The overall trend in 2022 was a return to normal market conditions,” said Chris Galler, CEO of Minnesota Realtors. “Every year-over-year decline in closed sales we measured on a monthly basis was compared to the extraordinary activity of 2021. As we head into 2023, we’ll hopefully see declines level off, setting the stage for a healthy resurgence of sales in the spring. Interest rates, of course, remain a critical factor. As December closed, the rate on a 30-year mortgage rose to nearly 7%. By early January, it slipped to just over 6.5%. Still, potential buyers and sellers are wary, cautiously waiting to see which way the housing trends will go. Big picture: All the indicators show a market that has slowed but is fundamentally healthy and ready to resurge when inflation eases.”
December year-over-year summary of key market indicators:
- Closed sales decreased 38.7% to 4,444
- Median sales price increased 1.7% to $305,000
- Average sales price increased 2.6% to $361,159
- New listings decreased 17.1% to 3,031
- Pending sales decreased 27.6% to 3,344
- Days on the market increased 24.3% to 46 days
- Homes for sale increased 15.3% to 9,204
% Change YOY in 2022 Statewide Closed Sales
Closed Home Sales Across Minnesota by Region
In December, closed sales declined in 12 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 38.7% year over year. The exception was the Upper MN Valley, which saw a 21.1% increase in closed sales. Otherwise, the smallest declines were seen in Southwest at 22.8%, Southwest Central at 25.4%, and Northwest at 30%. The largest declines were reported in South Central and East Central, each at 46.6%, and North Central at 47.3%. See the chart below for more details comparing closed home sales for December 2022 to December 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.