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.
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.