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Fewer homes sold in September in south-central Minnesota

FILE — Real estate sale signs line in front of a condo development in Lincoln Park, Mich.,...
FILE — Real estate sale signs line in front of a condo development in Lincoln Park, Mich., Tuesday, April 14, 2009.(Carlos Osorio | AP Photo/Carlos Osorio)
Published: Oct. 13, 2021 at 6:16 PM CDT|Updated: Oct. 13, 2021 at 6:17 PM CDT
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MANKATO, Minn. (KEYC) — The number of closed sales of residential homes in Minnesota declined in September, and southern Minnesota is seeing a significant decrease.

According to Minnesota Realtors, the number of closed sales of residential homes in the state declined 8.4% in September, compared to the same time last year. Correspondingly, new listings fell 8.5% over last year and pending sales were down 15.3%.

Responding to the lean inventory, buyers competed for limited housing stock, reducing the average time homes stayed on the market to just 27 days, a 34.1% decrease over last September.

On average, sellers across Minnesota received 110.4% of their asking price for homes, which is a 1.2% increase compared to September 2020. The overall number of homes for sale shrank 19.8% to 12,618, and the month’s supply of homes was down by 23.8% to only 1.6 months supply.

“Due to the extremely high number of closed sales in 2020, we’ve been expecting this year’s numbers to be lower for the last four months and the September numbers reflect that trend,” said Chris Galler, CEO of Minnesota Realtors. “So, while this year’s gains in closed sales may only be single digits, during a two-year period it’s been a gain of more than 20%, which is pretty astounding.”

Galler also noted that since 2019, the median home price has also averaged a double-digit increase and continues to rise as demand outpaces supply.

September year-over-year summary of key market indicators:

  • Closed sales decreased 8.4% to 8,997
  • Median sales price increased 10.8% to $310,000
  • Average sales price increased 10.0% to $354,426
  • New listings decreased 8.5% to 9,957
  • Pending sales decreased 15.3% to 8,050
  • Days on the market decreased 34.1% to 27 days
  • Homes for sale decreased 19.8% to 12,618

REGIONAL OUTLOOK

Closed sales were down across the state, with 11 regions reporting declines compared to September 2020, including the south-central Minnesota region, which saw a decrease of 11.7% compared to September 2020.

Visit the Minnesota Realtors’ website for more information, or view the document below for the full report.

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