According to Minnesota Realtors, the Minnesota Realtors Association, home buyers and sellers pulled back in February due to uncertainty and higher interest rates. Home prices went up.
“After five months of growth, seller activity slowed in February. New listings fell 7.2% across Minnesota as many homeowners chose to stay put with lower interest rates. Pending sales also declined 7.9%, marking the second straight month of declines. High mortgage rates, low inventory, and broader economic factors pose affordability challenges, shaping buyer and seller decisions.
Housing supply appears to be flattening out after months of growth, with active listings up 1.0% statewide. Even with recent inventory gains, the state would need a 150% increase—more than 16,000 additional properties—to reach a balanced market.
Prices continued to rise, with the median home price up 4.9% to $343,000. Buyers remain focused on monthly mortgage payments, which have risen significantly compared to a few years ago. Despite rising home prices, recent rate declines could lessen monthly payments.”
February Year-Over-Year Summary of Key Market Indicators:
- Closed sales: 3,399 (down 8.5%)
- Median sales price: $343,000 (up 4.9%)
- Average sales price: $402,812 (up 7.6%)
- New listings: 5,999 (down 7.2%)
- Pending sales: 4,300 (down 7.9%)
- Days on the market: 59 (up 11.3%)
- Homes for sale: 11,689 (up 1.0%)
- Months Supply: 2.1
