According to new data from Minneapolis Area REALTORS® and the St. Paul Area Association of REALTORS®, the Twin Cities market started to show signs of a return to normalcy in February. The median home sale price was up 2.7 percent to $341,995. This is compared to nearly three years of about 10 percent year-over-year increases.
According to the report, this latest price growth is more in line with the historical regional average of 3.2 percent.
“Anyone concerned about runaway home prices should be comforted by the more typical price growth we’re seeing, which gives buyers a chance to catch their breath and incomes a chance to catch up,” said Brianne Lawrence, President of the Saint Paul Area Association of REALTORS®. “While the Twin Cities remains a seller’s market, homes are taking longer to sell and sellers are accepting less than their list price.”
A slowdown in activity from buyer’s has yielded higher inventory across the housing market with 14.5 percent more homes listed on the market.
However, the Minnesota housing market is still considered to be vastly undersupplied. The report notes that a balanced market sees about 4-6 months of inventory available for sale – the Twin Cities housing market recorded 1.3 months supply.