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December 2022 Housing Report

Inventory is up, but high interest rates continue to dampen activity
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.” 

May be an image of text that says '9,204 Homes forSale for +15.3% vs Dec. 2021 $305,000 Median Sales Price 密 Minnesota Realtors® 1.7% vS Dec. 2021 Dec. 2022 Housing Report 4,444 Closed Sales 38.7% vs Dec. 2021 46 Days on Market 个 +24.3% vs Dec. 2021'

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 

Month  Closed Sales
January -9.9% 
February -12.9% 
March -8.4%
April -10.9%
May -6.5%
June -13.7% 
July -19.2% 
August -17.0%
September -18.2% 
October -30.7%
November -35.3%
December -38.7%

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. 

View full regional and county reports here. 

View statewide report here.