Skip to main content

What has been described as the "worst inventory shortage in decades" is driving Twin Cities house prices to even greater heights, with the median sales price now reaching $353,000.

That's according to the Twin Cities Housing Report from Minneapolis Area Realtors, which says the heating up of the spring market combined with record low inventory continues to push prices up.

In March, the median property sales price hit $353,000, a 7.5% increase compared to March 2021, and the first time the metro-wide median price passed the $350,000 mark.

The realtor association says the "ongoing inventory shortage is mostly to blame." The number of houses on the market is 12% lower than the same time last year, and the supply in March 2021 was 43% lower than the year before.

That means there is currently about four weeks supply of inventory, with Minneapolis Area Realtors noting that a "balanced market has roughly four to six months of supply."

Screen Shot 2022-04-15 at 11.29.28 AM

The report however notes that there isn't quite the same level of "frenzy" as there was last spring, with properties staying on the market slightly longer than a year ago.

There were 6,416 newly listed homes for sale during March, which is 4.8% fewer than last March, though 4.2% higher than March 2019.

The report notes that "some aging empty nesters are staying put and aging in place while others have chosen to remodel or expand their current home instead of listing it."

Buying or selling? Find a realtor using the BMTN directory

Rising interest rates may be playing a role here, with som homeowners reportedly "married to their interest rates" and reluctant to move lest they lock into higher rates.

But Denise Mazone, president of Minneapolis Area Realtors, notes that even though a 1% rise would add around $187 per month to mortgage payments on a $350,000 home (with 10% down), equity gains over time are "likely to outpace the slightly higher payments."

It remains a sellers market, with the March figures showing sellers are accepting offers that are on average 2.7% higher than their list price.

Next Up

Redtail Ridge Elementary

Sunbather on the roof triggers shelter-in-place at Savage elementary school

The sunbather told police he was trying to "tan and relax."

Nero

The Raptor Center's ambassador, Nero the turkey vulture, dies at 47

Nero helped save the California condors before taking up his post as an education ambassador.

Ben Leber

Ben Leber named new permanent co-host of 'Twin Cities Live'

The former Minnesota Vikings linebacker was introduced Friday afternoon.

MPR

APM Reports, maker of 'In the Dark' podcast, nixed by Minnesota Public Radio

MPR said "select programming elements" of APM Reports will be incorporated into MPR News.

storm, severe

The latest on holiday weekend severe weather chances for MN

The most significant severe threats are Sunday night and again on Monday.

Arianna Vos

Charges: Driver was drunk, high in head-on crash that killed 19-year-old woman

The young woman killed in the crash was a college student studying zoology.

motorcycle

Motorcyclist killed in Ham Lake after passing in the turn lane

The motorcyclist was hit by a car turning onto the road.

Keith Ellison

Minnesota gets cut of Ford settlement over misleading ads

The $19.2 million settlement centers on Ford's C-Max hybrid and Super Duty pickup truck.

Related

House sale keys door

High prices, stiff competition putting off homebuyers in Twin Cities

Prices continue to rise in the metro, but there are signs of buyer fatigue.

House for sale

Median house prices in Twin Cities pass $300,000 for first time

However, there was a significant slump in new listings resulting from COVID-19.

House for sale

Twin Cities median home price hits record $280,000 in 2019

The Minneapolis Area Association of Realtors has issued its annual report.

House for sale

A seller's market: Record-low inventory in Twin Cities, buyers fight for new homes

Area Realtor associations have released their February housing report.

House for sale

MN house prices rising despite pandemic, though pending sales are tumbling

The coronavirus crisis is having an impact on the real estate market, just not house prices.

House for sale

Despite pandemic, Twin Cities housing market set records in 2020

Sales were up 7.7% in 2020 compared to the year before.

House for sale

Twin Cities housing market offering mixed blessings for buyers, sellers

It's good for those moving up the ladder, less so for those getting on.

Pixabay - keys home house

Median sale price of Twin Cities homes hit whopping $350,000 in May

High demand and low supply is the reality for buyers throughout much of the state.