Home sales in southeastern Minnesota continue to increase amid statewide decrease

Mortgage rates increased again this week, hitting 5% for the first time since 2010, according...
Mortgage rates increased again this week, hitting 5% for the first time since 2010, according to Freddie Mac.(Source: Teresa J. Cleveland / U.S. Air Force)
Published: Apr. 27, 2022 at 6:37 AM CDT
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ROCHESTER, Minn. (KTTC) – March data from Minnesota Realtors shows decreased home sales across many parts of the state, but sales continue to increase in southeastern part of the state.

According to the data, home sales declined in 11 regions of the state, seeing an overall 8.4% decrease. The situation is different, however in southeastern Minnesota. The data shows the area saw a 5% increase in closed sales and an overall 8% increase in median sales.

The data shows the median home sales price in Minnesota is up to $322,000.

Minnesota Realtors CEO Chris Galler said one reason for the increase in sales is due to the region’s strong economy.

“The southeast region of the state is doing really well,” Galler said. “They’re actually a very consistent area of the state. We think that’s because that’s because the employment is so good and solid down there. You get gains but you don’t get the astronomical gains. You get nice solid, predictable trends over the years.”

He said areas like Albert Lea, Byron, Stewartville, Austin and Rochester are all doing well.

He said home inventory continues to be low. He said there’s only about one month of inventory available in Rochester and in other areas of the state. He cited construction and supply chain delays, people deciding not to move due to the pandemic, people wanting to move to bigger houses due to working at home due and historically low interest rates.

He added that on average, sellers are getting 101.5% over asking price on their houses.

Galler said the data is showing the state housing market is trending to a pre-pandemic status, but, it will still be a while before it stabilizes. He said interest rates will continue to rise.

“There are a lot of factors at play, so it’s hard to predict right now when that will happen,” he said. “Ultimately, we anticipate this will stabilize what has been a historically overheated housing market.”

Minnesota Realtors stat for March year-over-year summary of key market indicators:

• Closed sales decreased 8.4% to 5,511

• Median sales price increased 9.2% to $322,000

• Average sales price increased 8.4% to $368,161

• New listings decreased 5.8% to 8,926

• Pending sales decreased 12.2% to 7,211

• Days on the market decreased 11.9% to 37 days

• Homes for sale decreased 10.7% to 7,808

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