MINNEAPOLIS — You've heard it for months — the housing market is hot. With limited inventory, buyers are putting in multiple offers, waiving inspections and offering above asking price to get the keys to a new home.
New data shows just how competitive the local market has become.
In the market for some new digs? Here's what you should know, according to the Minneapolis Area REALTORS and the Saint Paul Area Association of REALTORS:
Home prices and inventory
The median home price rose 10% to a record $370,000 in April 2022.
While low interest rates have offset rising monthly mortgage payments, the Federal Reserve has started raising rates to combat high inflation.
April 2022 ended with 5,758 homes on the market, 9.2% fewer than April 2021 – the 25th straight month of year-over-year inventory declines.
While a balanced market has a four to six months' supply of homes, the current market has just 1.1 months' supply of inventory.
Listings and sales
Buyers signed 9.2% fewer purchase agreements in April compared to the same month last year, and closed on 9% fewer homes.
Sellers listed 7% fewer homes.
Compared to April 2021, listings spent 9.7% fewer days on the market this April, and the median days on the market reveal half of all homes went under contract in under eight days – even with last April's pace.
Location and property type
While market activity varies by location, price point and property type, new and existing home sales dropped by 3.5% and 8%, respectively.
Single family sales dropped 8.3% while condo sales rose 1.5%.
In Minneapolis, sales declined 3.2%, while in St. Paul, they fell 17.7%.
The Longfellow, University, Summit Hill and West Seventh neighborhoods saw the largest sales gains, along with Hopkins, Mounds View, Wyoming and Somerset.
Times are tough for renters, too. According to real estate firm Redfin, average monthly listed rents increased by 14% last year nationwide, "the largest annual jump since at least February 2019 — the earliest month in Redfin's rental data." Redfin also reported a year-to-year increase of 9% for Minneapolis from 2020 to 2021, far from the largest jump in the U.S., but not insignificant.
An in April, a Washington Post analysis calculating county-by-county rent increases dating back to 2019 found that Hennepin and Ramsey counties have seen average rent increases of 3.4% and 5%, respectively, while Wright, Isanti, Chisago, and Washington Counties have all experienced double-digit-average rent hikes.
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