Minnesota Real Estate in February: Sales Up 5% YoY, Inventory Down 52% YoY

Note: I’m posting data for many local markets around the U.S. The story is the same just about everywhere … inventory is at record lows.

From the MNRealtor Homes for sale down. Pending sales flat for first time since May 2020 for the entire state:

Demand remained high in the Minnesota housing market in February as homebuyers competed with multiple offers for diminishing housing stock. Closed sales were up +5.8% over last year, but new listings sank -14.8%. Since last May, pending sales fell flat for the first time and were down -0.8% from February 2020. Adding to the pressure, homes for sale fell 51.6%, the largest decrease in a year. Shrinking inventory defined this seller’s market, pushing the median sales price up +10.6% to $282,000. Days on the market retracted by -25.47% over last year, down to just 47 days. Correspondingly, homes received 99.0% of the original price received, a +2.3% increase over last year.
emphasis added

Closed sales in February 2021 were 4,424, up +5.8% from 4,180 in February 2020.

Active Listings in February 2021 were 7,460, down 51.6% from 15,417 in February 2020.

Months of Supply was 0.9 Months in February 2021, compared to 2.1 Months in February 2020.

Minnesota InventoryClick on graph for larger image.

This graph from the Minnesota Association of REALTORS® shows inventory in Minnesota since 2012. Inventory had been trending down, and then declined significantly during the pandemic.