According to data from the Minneapolis Area Association of Realtors, inventory was at an all-time low at the beginning of February 2022. It was down 19% from February 2021, about half the drop of 38.2% from 2020 to 2021… but inventory was already so low last year it didn’t take much more of a drop to hit an all-time low this year.
New listings dropped 7.3% in 2022 compared to 12.6% in February 2021… but 7 straight months of falling new listings is taking its toll as pending sales dropped 10.5% and closed sales dropped 15.3% compared to last year. There just aren’t enough listings to feed the demand for sales.
Days on market (DOM) until sale fell 8.7% lower than last year’s already low DOM. Properties are still often selling for more than list price, with average sale price 100.7% of list price. This is causing median sales price to rise 8.3% above last February, to $340,000.
Looking at months supply of inventory, which takes into account both the number of homes for sale and the rate at which they are selling, was 20% below February 2021 and tied with December 2021 and January 2022 for all-time low at 0.8 months. Months supply in all price ranges including homes priced over $1M is less than 3 months.
When looking at property type, condos continue to lose less as the supply goes back up a bit. Townhomes lost the least months supply while houses held steady with last month. The thing to know is condos are in highest supply, townhomes next and houses last when measured by months supply.
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
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Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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