(FOX 9) – Dwindling inventory and rising prices pushed Minnesota closed-home sales down 12.9% from the previous February.
According to Minnesota Realtors, a membership organization supporting the state’s 22,000 real estate agents, new listings were down 8.5% from a year ago, with just 5,801 homes added to the market.
Meanwhile, consumer demand remained strong, with the median sale price increasing 7.8% to $304,500 and the average price reaching $353,409, up 10.3% from the previous year. last year.
“We simply don’t have the inventory levels to meet demand,” Minnesota Realtors CEO Chris Galler said in a statement. “The combination of a falling affordability index and rising interest rates is causing significant problems for first-time home buyers who are counting pennies and eagerly waiting to buy their own homes.”
Sellers are receiving 99.7% of their asking price as the statewide supply of homes has shrunk 21% to 6,606 available units.
Three regions reported increases – the central south-west scoring double-digit gains at 11.1%, the south-east at 5.9% and the south-west at 1.6%.
The largest regional declines included the mid-west (27.4%), mid-east (18.1%) and north-west (17.6%).