Pending home sales in the Twin Cities jumped 18.5 percent last month to the highest level since June 2005, according to data released Wednesday by the Minneapolis and St. Paul Area Associations of Realtors.
The median home sales price in the Twin Cities also rose 15 percent to $194,450 compared with the same month last year. Minnesota Public Radio notes it was the highest median price since August 2008.
"With the recent disparity between massive buyer demand and sluggish seller supply, it is encouraging to see a substantial increase in traditional listings," Andy Fazendin, President of the Minneapolis Area Association of Realtors, said in a news release.
There were 14,375 homes for sale in the 13-county metro area in May, down more than 22 percent from 18,512 a year earlier, the Pioneer Press reports.
The tight supply of homes on the market is also prompting bidding wars in select Twin Cities neighborhoods, especially on properties priced below $200,000.