Pending Home Sales Increase in Minneapolis

According to a recent report by Minnesota Realtors, the Minneapolis real estate market experienced a slight growth in pending sales compared to the same period in 2023.

The report revealed that pending sales in the Minneapolis metropolitan area increased by 1.5% since September 2023, while pending sales at the state level saw a slight decrease of 0.5%.

This modest increase in the Minneapolis-St. Paul metropolitan area, known as the Twin Cities, marks a small shift from a summer characterized by slow sales activity, during which pending sales from May to August dropped by as much as 10.8%.

This past September also saw a continued rise in new properties for sale, with a 4.2% increase in the metropolitan area compared to last year, while new properties for sale statewide rose by 4.4%.

However, foreclosure activity remains a concern in some areas, as rising costs and interest rates have made homeownership more challenging for many buyers.

In terms of prices, the statewide median home sale price in Minnesota reached $350,000, a 6.1% increase from last year. In the Twin Cities metropolitan area, the median price was $380,000, 2.4% higher than the previous year but lower than the August average of $389,700.

The president of the St. Paul Area Association of Realtors, Ms. Amy Peterson, noted that these price increases have led real estate agents to spend more time helping buyers understand the financial implications of homeownership. She stated: “We are focusing more on educating buyers, especially first-time homeowners, about the total cost of owning a home so they can make informed decisions.”

While interest rates dropped slightly in mid-September, the market remains favorable for sellers, as homeowners with lower interest rates are hesitant to sell. For this reason, Ms. Peterson suggested that an interest rate of 6% could create greater balance between buyers and sellers.

Amy Peterson concluded by saying: “There is still much work to be done to achieve a balanced real estate market. Typically, that means having a four-to-six-month supply of homes, and we are far from that at the moment.”

Available Foreclosures :

Minneapolis: 12 homes available

St. Paul: 8 homes available

Statewide: 45 homes available

By Elías DaSilva | 03 de diciembre de 2024