Minneapolis (KROC-AM News)  - It was a cold end to a hot year in the Minnesota housing market, as closed sales of residential homes were down 4% in Minnesota, compared to December 2020, according to Minnesota Realtors.

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New listings sank 14.3% over the previous year, as buyers continued chasing diminishing inventory, which drove up the median sales price by 8% to $300,000. In Southeast Minnesota, home sales were down 4.6% over 1 year ago. In Olmsted County, the median sale price was up 13.8% when compared between December 2020 and December of 2021 at $295,950.

“As 2021 ends, we see the return of a normal seasonal cycle. Gaps compared with the previous year reflect the remarkably high volume of sales in December 2020. Seen in the larger historical context, 2021 ended on a high and healthy note,” said Chris Galler, CEO of Minnesota Realtors.

“The increasing median and average price for homes reflects the fact that buyers are still actively competing for properties. Limited inventory will continue for the foreseeable future due to escalating construction costs, labor and materials shortages, zoning requirements, and regulatory burdens."

"As buyer demand increases, home prices will rise. Even if interest rates go up in the spring, these initial increases are unlikely to diminish Minnesotan’s appetite for buying homes in 2022.”

The average home in Minnesota sold within just 36 days, which is six days faster than the 42-day average in December 2020. According to Minnesota Realtors, sellers were still well-positioned to benefit from buyer demand, receiving 98.7% of their asking price, a 0.2% increase over last December. As the year closed, there was barely a month’s supply of homes in the state’s housing stock, down nearly 25% from December 2020.

December Year-Over-Year Summary of Key Market Indicators In Minnesota:

Closed sales decreased 4.0% to 7,137
Median sales price increased 8.0% to $300,000
Average sales price increased 9.4% to $351,135
New listings decreased 14.3% to 3,591
Pending sales decreased 12.4% to 4,595
Days on the market decreased 16.3% to 36 days
Homes for sale decreased 24.5% to 7,121

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