House prices continued to rise across the Twin Cities metro, reaching a record median price of $280,000 in 2019.
That's according to the annual report by the Minneapolis Area Association of Realtors, which confirmed median prices had risen 5.7 percent compared to 2018.
The price rise comes amid ongoing housing supply pressures, with the months supply of inventory (the time it would take for all the homes on the market to sell given the current pace of sales) falling by 21.2 percent to just 1.5 months.
The number of properties on the market in December meanwhile dropped 19.6 percent compared to 2018, down to 7,431 units.
While the median price is rising, it doesn't mean that all homes are getting more expensive, but rather there continues to be a "tightening" of the market, as we've reported on before.
Competition for homes valued at under $350,000 is particularly fierce, exacerbated by limited supply, and this is driving prices up at the lower end of the market.
On the other hand, homes valued at over $500,000 are in greater supply, thus giving buyers more room to negotiate.
There remains a real demand for new construction homes in the Twin Cities, with new build sales rising 6.9 percent last year.
By comparison, previously-owned home sales only rose 0.3 percent.
Single family homes are still the most highly prized, with sales rising 1.5 percent, while condo sales fell 1.7 percent and townhome sales down 1.4 percent.
Linda Rogers, President of the Minneapolis Area Realtors, said: "The second half of the year saw consistent sales gains, as record prices and declining affordability were offset by favorable rates and wage growth.
"Buyers were persistent despite tight inventory – particularly under $300,000. That’s no surprise, as the Twin Cities are a wonderful place to live, work and play."