The numbers for February are in for home sales in Minnesota. According to Minnesota Realtors:
“Shrinking inventory and increasing prices pushed closed sales down 12.9% over the previous February. New listings were down 8.5% compared to last year, with just 5,801 homes added to the market.
Despite this, consumer demand remained high, with the median sales price rising 7.8% to $304,500, and the average price hitting $353,409, up 10.3% over last year.
Sellers were receiving 99.7% of their asking price as the statewide supply of homes plummeted 21% to just 6,606 units.
As inflation nudged interest rates up to 4.45% for a 30-year fixed-rate mortgage, the affordability index—which measures whether an average family earns enough to qualify for a loan on a typical home—sank 11.6% over last year.”
To summarize the number of homes for sale is very low because fewer people are selling their houses which continues to drive up prices because the demand for housing is very high. At the same time, higher interest rates and inflation helped to make homes less affordable.
