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Inventory Ticks Up as Closed Sales Stall in May
By MNR News posted 6.15.2023
MINNEAPOLIS (June 15, 2023) — As temperatures rose and flowers bloomed, the real estate market in Minnesota stayed relatively cool during the month of May. Closed sales fell by almost 26% compared to the same period last year, ending the month at 5,773. New listings were also down 15.3%, while pending sales dropped about 16%.
But inventory ticked up to 1.9 months’ supply, a near 27% jump versus last May, providing more purchasing opportunities for some house hunters—though that mark fell short of the four to six month supply typically considered as a balanced market. Homes spent an average of 34 days on the market, up almost 31% versus last year.
The median sales price decreased less than a percent to $340,000. Despite this year-over-year dip, prices increased by almost $5,000 over the previous month of April. On average, sellers received 100.4% of their asking price, signaling continued competition for desirable properties. Despite the slight increase in inventory, the total number of homes for sale across the state decreased by 4.2% to 10,905 compared to May 2022.
Emily Green, President of Minnesota Realtors (MNR) said, “We saw a continuation of strong buyer demand and a welcomed, if slight, increase in overall month’s supply of properties available. Many buyers have accepted the new interest rate environment, and cash buyers are still a large percentage of the sales—which means well-positioned listings are enjoying a fast-moving market where multiple offers are common, especially in affordable price ranges.” She added, “We expect the activity to remain steady and the gap between the Spring and Fall markets to be a little shorter this year, especially if more sellers take advantage of the favorable market conditions.”
May Year-Over-Year Summary of Key Market Indicators:
- Closed sales decreased by 25.7% to 5,773.
- Median sales price decreased by 0.7% to $340,000.
- Average sales price decreased by 0.4% to $392,785.
- New listings decreased by 15.3% to 9,803.
- Pending sales decreased by 16.1% to 7,185.
- Days on the market increased by 30.8% to 34.
- Homes for sale decreased by 4.2% to 10,905.
In May, closed sales declined in all 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 25.7% year-over-year. The smallest declines were seen in Northwest at 4.7%, Southwest Central at 8%, and South Central at 9.7%. The largest declines were reported in East Central at 38.5%, Upper MN Valley at 34.1%, and Headwaters at 30.4%. See the chart below for more.
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.
About Minnesota Realtors®
Minnesota Realtors® (MNR) is the membership organization supporting all 22,000 Realtors® in the state of Minnesota. MNR is dedicated to helping Realtors® succeed in providing comprehensive and informed guidance to their customers seeking to buy or sell a home. MNR provides Realtors® with a code of ethics, continuing education, real estate transaction forms, legal services and dispute resolution, as well as lobbying and advocating for homeownership rights and the real estate industry. MNR works in partnership with the National Association of Realtors, as well as more than 15 affiliate regional associations within Minnesota. MNR is a non-profit organization founded in 1919, with headquarters in Minnetonka, Minnesota, and a branch office in St. Paul, Minnesota. Find us at www.mnrealtor.com and follow us on Facebook, Instagram, Twitter and LinkedIn.
