MINNEAPOLIS (April 21, 2022) — Closed sales fell by just over 8% compared to March of last year, indicating a softening, though still robust housing market. New listings in March were down nearly 6% compared to a year ago with 8,926 properties coming on the market. Statewide inventory shrank by almost 11% to 7,808 homes for sale, which is just one month’s worth of supply. Consumers were not deterred by the tight market. Buyer demand drove the median home sales price in Minnesota up 9.2%to $322,000.On average, sellers were receiving 101.5% percent of their asking price, a 0.8% increase over March of last year.
“The decline in closed sales during March is in line with recent state and national trends and reflects homeowners’ reluctance to sell their homes and become buyers in a hyper-competitive environment where interest rates and home prices are rising,” said Chris Galler, CEO of Minnesota Realtors. “The same dynamic is motivating consumers to compete fiercely for diminishing inventory. This likely will be the trend for the rest of the year. In the bigger picture, it signals a return to more normal market conditions like those preceding the pandemic. Ultimately, we anticipate this will stabilize what has been a historically overheated housing market.”
March year-over-year summary of key market indicators:
- Closed sales decreased 8.4% to 5,511
- Median sales price increased 9.2% to $322,000
- Average sales price increased 8.4% to $368,161
- New listings decreased 5.8% to 8,926
- Pending sales decreased 12.2% to 7,211
- Days on the market decreased 11.9% to 37 days
- Homes for sale decreased 10.7% to 7,808
Closed Home Sales Across Minnesota by Region
In March, closed sales declined in 11 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 8.4% year over year. Two regions reported increases: the Upper MN Valley at 34.5%, and Southeast at 5.1%. The smallest declines were seen in Southwest Central at 2.1%, Central at 2.2%, and South Central at 4.0%. The largest declines were reported in Northwest at 31.8% and West Central at 32.3%. See the chart below for more details comparing closed home sales for March 2022 to March 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.