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Minnesota Housing News
Sarah Thamer

Minnesota home inventory hit seven-year high in July

townhomes under construction
New townhomes under construction in St. Paul on May 15. New construction of housing units in Minnesota has been lagging other states for several years and contributes to the low inventory of homes for sale.
Annie Baxter | MPR News

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Minnesota’s housing market is showing signs of easing, with more homes for sale and buyers taking a little longer to make decisions.

More than 20,000 homes were on the market statewide in July, a 9.1 percent increase from a year earlier, according to new data from Minnesota Realtors, Minneapolis Area Realtors and the Saint Paul Area Association of Realtors. It was the highest July inventory in seven years.

Sales also increased. Pending sales were up 2.7 percent statewide, while completed sales rose 11.2 percent. In the Twin Cities metro, pending sales increased 3 percent and closed sales were up 10.5 percent.

According to the report’s authors, the increase in available homes is giving buyers more options, although Minnesota's housing market remains short of the supply typically considered balanced.

Here are other highlights from the July report:

  • There were 20,084 homes for sale across Minnesota in July, up from about 18,400 a year earlier.

  • The average Minnesota home spent 48 days on the market in July, up from a year earlier. In the Twin Cities, the average was 40 days, about the same as last year.

  • Homes are still selling close to their asking prices. Sellers received an average of 98.3 percent of their list price statewide and 99.1 percent in the Twin Cities.

  • More inventory has not stopped home prices from rising.

  • The statewide median sales price reached $375,000 in July, up 2.7 percent from a year earlier. In the Twin Cities, the median was $408,000, up 3.3 percent.

  • In Minneapolis, sales increased 9.8 percent. In St. Paul, sales declined 4.8 percent.

The July report also says pricing changes were not uniform across the state. And it says the underlying housing shortage has not gone away, either. Minnesota continues to have fewer homes available than would be needed to meet demand in many communities.