Tightened Inventory Continues to Push Home Prices Up in Minneapolis-St. Paul
Surprise, surprise! Limited inventory continued to drive home prices up in January—a trend that’s become all-too-familiar here in Minneapolis-St. Paul over the last year or so.
According to new data from the Minneapolis Area Association of Realtors (MAAR), supply was once again on the downslide in January, which is now the third month in a row that we’ve seen a drop in available homes for sale.
Officially, just 4,041 properties were listed on the market last month, representing a nearly 8% decline compared to January of 2017. Not surprisingly, fewer options also led to fewer sales, with January also seeing just 2,758 closings. That figure represents a 3.4% drop year-over-year.
And bad news for buyers: the median cost for a home in the Minneapolis-St. Paul market has now settled at $243,750, which is up nearly 10% from this time last year. Of course the busy spring market is also right around the corner, so don’t look for a slowdown in price increases any time soon.
