Facebook
X
Pinterest
Copy Link
Median sales price climbs and number of overall homes for sale rises
MINNEAPOLIS (July 15, 2022) — In June, closed sales of homes declined by nearly 14% compared to a year ago, with a total of 9,208 properties sold across the state. New listings were down 6.4% year-over-year even as the total number of homes for sale increased 8.2% to 12,298 properties. Overall housing inventory increased significantly, up 21.4% over last June to 1.7 months’ supply of homes on the market. Despite softening activity relative to last year, consumer demand drove the median sales price up 6.2% to $345,000, and the average price increased 9% to $401,319. Sellers were still receiving an average of 102.5% of their asking price, although this marks a slight 0.7% decline compared to June of last year.
“Although new listings were down, the state’s total housing supply was up, drawing more prospective buyers into the market,” said Chris Galler, CEO of Minnesota Realtors. “As we look at the decline in closed sales, it’s important to remember that these numbers are relative to last June’s abnormally heated market. What we are seeing this month is more closely aligned with historical norms for this time of year. Still, as higher interest rates and inflation continued to play a role, many first-time buyers were sidelined. The buyers who are successfully competing have the money to stay in the game. This dynamic is unlikely to change until we can help more buyers close the gap with tools like downpayment assistance, and broadly increase construction of more affordable homes.”
June year-over-year summary of key market indicators:
- Closed sales decreased 13.7% to 9,208
- Median sales price increased 6.2% to $345,000
- Average sales price increased 9.0% to $401,319
- New listings decreased 6.4% to 11,417
- Pending sales decreased 16.6% to 8,124
- Days on the market decreased 8.0% to 23 days
- Homes for sale increased 8.2% to 12,298
Closed Home Sales Across Minnesota by Region
In June, closed sales declined in 11 out of 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 13.7% year over year. Only one region reported an increase: North Central at 5.9%. The smallest declines were seen in Headwaters at 1.5%, Southwest Central at 5.1%, and Arrowhead at 9.7%. The largest declines were reported in the 7-County Twin Cities at 16.0%, East Central at 18.8% and Northwest Central at 20.7%. See the chart below for more details comparing closed home sales for June 2022 to June 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.
