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.
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.