Sorry, millennials, it's harder than ever to buy a home in the Twin Cities

Final sale prices have now risen for 64 consecutive months
Author:
Updated:
Original:

Yet another record high for Twin Cities house prices has been set, with the average sale in June costing 7 percent more than last year.

The Minneapolis Area Association of Realtors (MAAR) announced this week that the median sale last month hit $259,000. In June 2016, it was around $242,000.

It means that young professionals hoping to get onto the housing ladder face an increasingly difficult task getting the money together for a down payment, while at the same time competing in a fierce market that sees new listings disappear sometimes within hours.

There are few bargains out there, with the press release from MAAR noting that buyers paid, on average, 99.5 percent of list price last month.

Half of the sales made in the metro area in June went for MORE than the list price.

Lack of supply drives prices higher

And choice for first-time buyers is getting smaller and smaller as well, with the number of houses on the market the lowest it's been for June since 2003.

There's only around 2.5 months of housing supply, and much of this is because of a declining number of foreclosure and short-sales going on the market.

This lack of supply is encouraging competition between prospective buyers, pushing prices higher, MAAR notes.

While supply is dwindling, the demand to buy is huge. Some 7,430 homes changed hands last month, a record for June in the Twin Cities.

“The numbers confirm what agents already know about this market,” said Cotty Lowry, Minneapolis Area Association of REALTORS® (MAAR) President.

“We are still very thirsty for listings. That means sellers who list well-presented, well-priced homes are being rewarded, and they’re finding the move-up market to be less competitive.”

GoMN's Tip Jar column has this guide for first-time buyers on how to get ahead in this competitive housing market.

Next Up

ambulance

2 killed in head-on crash involving car, dump truck

The crash happened just before 2 p.m. Friday, according to the State Patrol.

coronavirus

Here is Minnesota's COVID-19 update for Saturday, October 31

Minnesota has surpassed 3,000 new cases on consecutive days.

high school football

Minnesota Football Showcase postponed due to COVID-19

The MFCA All-Star Game will be played in June 2021.

Screen Shot 2020-10-31 at 7.26.05 AM

Here's what President Trump said on his visit to Minnesota

The president targeted Gov. Tim Walz and Keith Ellison at his Minnesota rally.

Screen Shot 2020-10-30 at 6.09.58 PM

Here's what Joe Biden said in Minnesota Friday

Presenting himself as the candidate for a united country, he pledged improvements on affordable healthcare, pandemic relief

Mohamed Ibrahim

Missed PAT seals Gophers' fate against Maryland

Mohamed Ibrahim tied a school record with four touchdowns, but the Gophers lost in overtime.

dnr trout stocking helicopter

DNR uses a helicopter to more efficiently stock lakes with trout

In the past, the DNR used airplanes to stock remote lakes with fish, but the survival rate of the fish was only 85%.

steve simon zoom call

Secretary of State explains plans for segregated absentee ballots

Election officials are reminding voters that it's too late to mail in your absentee ballots.

Halloween, trick-or-treating

Osterholm on safe trick-or-treating: 'I would say go ahead with it'

The infectious disease expert's opinion doesn't align with the CDC's guidance.

Related

House for sale

Zillow to start buying homes directly from sellers in Twin Cities

The Twin Cities becomes the 10th metro where Zillow has launched its buying service.

Here's why it now costs more than $1,000 to rent a Twin Cities apartment

Landlords looking to capitalize on wealthier tenants have contributed to rising rental prices in the Twin Cities.

Foreclosures drive down Twin Cities home prices

The average home in the metro area is now going for around $149,000. That's about 10 percent lower than a year ago. Foreclosures and short sales, economic fears and budget-minded buyers are keeping prices down despite stronger sales.