Home Sales Down Slightly in Southeast Minnesota Last Month

Minneapolis (KROC-AM News) - Home sales in southeast Minnesota were down slightly from January of last year.

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A new report from the Minnesota Realtors said in January 2021, there were a total of 385 home sales closed, compared to 381 in January 2022. While the number of sales were down, the median home sale price in the region was up over 10%.

Minnesota Realtors said that a strong buyer demand and a shrinking number of homes for sale in Minnesota drove up the prices in January. Closed sales across the state of residential homes were down nearly 10% compared to January 2021. Inventory plummeted by nearly 25%.

“As the year opens, inventory shortages continue to frustrate many buyers. And those that do close on homes are paying significantly more,” said Chris Galler, CEO of Minnesota Realtors. “Affordability is a significant concern as home prices increase faster than wages. Also, the Federal Reserve has indicated they will increase interest rates in the next few weeks. Higher interest rates, higher home prices and low inventory levels will challenge many first-time home buyers trying to enter the marketplace.”

January Year-Over-Year Statewide Statistics:

• Closed sales decreased 9.9% to 4,365
• Median sales price increased 8.5% to $295,000
• Average sales price increased 9.0% to $338,754
• New listings decreased 11.2% to 4,791
• Pending sales decreased 10.9% to 4,497
• Days on the market decreased 10.9% to 41 days
• Homes for sale decreased 24.3% to 6,631