Minneapolis (KROC-AM News) – It was a cold end to a hot year in Minnesota’s real estate market, as closed residential home sales declined 4% in Minnesota, compared to December 2020, according to Minnesota Realtors.
New listings plunged 14.3% from the prior year as buyers continued to chase shrinking inventory, pushing the median sales price 8% to $ 300,000. In southeastern Minnesota, Home sales fell 4.6% from 1 year ago. In Olmsted County, the median sales price increased 13.8% compared to December 2020 and December 2021 to $ 295,950.
“As 2021 ends, we see the return of a normal seasonal cycle. The gaps compared to the prior year reflect the remarkably high sales volume in December 2020. Seen in the broader historical context, 2021 ended on a high and healthy note, ”said Chris Galler, CEO of Minnesota Realtors.
“The rise in median and median home prices reflects the fact that buyers continue to actively compete for properties. Limited inventory will continue for the foreseeable future due to escalating construction costs, labor and material shortages, zoning requirements and regulatory burdens. “
“As buyer demand increases, home prices will rise. Even if interest rates rise in the spring, these initial increases are unlikely to dampen Minnesotans’ appetite to buy homes in 2022.” .
The average Minnesota home sold in just 36 days, which is six days faster than the 42-day average in December 2020. According to Minnesota Realtors, sellers were still well positioned to benefit from buyer demand, receiving the 98.7% of your sale price. , 0.2% more than last December. At the close of the year, there was barely a supply of homes for a month in the state’s housing inventory, almost 25% less than in December 2020.
December Year-Over-Year Summary of Key Minnesota Market Indicators:
Closed sales decreased 4.0% to 7,137
Average sale price increased 8.0% to $ 300,000
Average sale price increased 9.4% to $ 351,135
New listings decreased 14.3% to 3,591
Pending sales decreased 12.4% to 4,595
Days on the market decreased 16.3% to 36 days
Homes for sale decreased by 24.5% to 7,121
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