Home sales soaring, inventory shortage remains

MANKATO, Minn. (KEYC) - New house listings are increasing for the first time since March as more sellers enter a hot market.

According to Minnesota Realtors in September, closed sales spiked about 22 percent over a year ago. Meanwhile, pending sales hit a new high at about 27 percent above last year. While sales are booming, a shortage of inventory remains an issue, especially for first-time homebuyers. The number of homes for sale is down 37 percent from September 2019, which comes out to less than 15,000 properties for sale across the state, a historic low for Minnesota.

“The city of Mankato we had three and a half month supply at this time last year and this year we have 2 months supply. And there’s a number of cities, North Mankato four months supply last year and this year we’re down to 1.6 so we’re looking at 60 percent drops in some of those cases and some of the smaller communities around you they have maybe two or three homes for sale and that’s it,” says Chris Galler, CEO of Minnesota Realtors

Minnesota’s median home sales price shot to a historic high in September, rising to $279,900.

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