MINNEAPOLIS (September 13, 2022) — In August, closed sales were down 17% compared to a year ago, with 8,256 transactions across the state. New listings followed the cooling trend, falling 17.9% compared to last August even as the total number of homes for sale increased by 2% to 13,271. This bumped up the supply of homes on the market to 1.9 months, an 18.8% gain over last year. Although the median sales price increased 4.4% to $330,000, sellers were receiving slightly less than their asking price, down 2.2% to 99.3%. Homes were sitting longer, too, with days on the market averaging 29 days, up 7.4% from August 2021.
“The trend toward more normal market conditions continued in August, signaling a more buyer-friendly environment,” said Chris Galler, CEO of Minnesota Realtors. “Although homes with desirable features in an affordable price range are still fueling competition, the frantic ‘drive-by buying’ of a year ago is over. With an increasing supply of properties to choose from, buyers are becoming more thoughtful and discerning, and less likely to rush a purchase. Rising interest rates and the broader inflationary environment has also dampened activity. Still, for buyers with the means to go forward, this is a good time to find the right home without the stress and pressure of a heated market.”
August year-over-year summary of key market indicators:
“The trend toward more normal market conditions continued in August, signaling a more buyer-friendly environment,” said Chris Galler, CEO of Minnesota Realtors. “Although homes with desirable features in an affordable price range are still fueling competition, the frantic ‘drive-by buying’ of a year ago is over. With an increasing supply of properties to choose from, buyers are becoming more thoughtful and discerning, and less likely to rush a purchase. Rising interest rates and the broader inflationary environment has also dampened activity. Still, for buyers with the means to go forward, this is a good time to find the right home without the stress and pressure of a heated market.”
August year-over-year summary of key market indicators:
- Closed sales decreased 17.0% to 8,256
- Median sales price increased 4.4% to $330,000
- Average sales price increased 4.6% to $383,759
- New listings decreased 17.9% to 9,033
- Pending sales decreased 19.0% to 7,592
- Days on the market increased 7.4% to 29 days
- Homes for sale increased 2.0% to 13,271