The Minnesota housing market continued to slow in October, marking a return to a more typical seasonal slowdown in the state, Minnesota Realtors said.
According to the real estate group's latest report, closed sales in October dropped 16.2% to 8,713 compared to October 2020. That, along with the number of homes for sale, which was down 18.6%, reflects the shift to a more typical market than what homebuyers and sellers have seen for months.
“The extraordinary number of closed sales we saw in October 2020 was really a historic outlier. This month’s numbers are more closely aligned with expectations for the fall,” Minnesota Realtors CEO Chris Galler said in a statement. “Buyers who are still in the market are highly motivated to close, and willing to pay more. Interest rates remain low, so if the overall rate of inflation in the economy at large is kept in check, we will likely see resurging closed sales in the spring.”
Related [Oct. 19]: The crazy Twin Cities housing market is showing signs of slowing down
Minnesota Realtors said the market slowed in October in 11 of the 13 regions, with only regions in northwestern Minnesota seeing single-digit increases, while the seven-county Tin Cities metro saw closed home sales fall 17.3% compared to October 2020.
Some other findings from the statewide report:
- Median sales price increased 8.2% to $308,500
- Average sales price increased 5.8% to $354,686
- New listings decreased 10.2% to 8,428
- Pending sales decreased 10.6% to 7,994
- Days on the market decreased 23.1% to 30 days
- Homes for sale decreased 18.6% to 11,696