A recent Star Tribune article provided an interesting summary of July’s housing market activity. The headline: last month, more Minnesotans jumped at the chance to take advantage of our sellers’ market, with a much-needed 7,671 homes listed. That number marks the highest increase all year, and it’s roughly 4% more new listings than July 2017. With all the pent-up demand, however, the average number of active days for listings was only 38 days.
The median home sales price was $268,000 – a record high value for the month that can be attributed to a number of factors. First off, the article points to the extremely competitive entry-level bracket as reason for the high median value. The combo of intense competition and extremely low inventory drives prices up; this is what we’ve seen at play over the past year or two, and it’s only magnified. In fact, the article relayed that sales for homes less than $250k were actually down 9% in July. So, the larger number of homes listed for the month were likely in the mid to upper brackets. And in that same line of thought, the next bracket up (less than $500k) saw a 14% increase in activity, while million+ increased by 7%. When sellers are confident they can find a place to move, they’ll be much more likely to list, hopefully continuing this trend of additional listings, happy buyers, and a more balanced market.
A balanced housing market is the most desirable state for all; the parties involved are overall more satisfied and no one feels taken advantage of. July’s stats give us hope that we’re on the right track towards achieving that more balanced state. Furthermore, as we move towards the fall season, this uptick in listing activity would be ideal as we look even further ahead to the winter slow down. I think it’s safe to say we’re all a bit over the shortage of entry-level homes.