Home sales declined but so did listings, so Twin Cities buyers still pay above asking

During April, the median price of all closings was $367,500, a nearly 4% increase from the previous month but a 0.7% decline compared with last year.

Home prices in the Twin Cities last month marked their first annual decline in more than a decade, but with house listings also on the decline, sellers still nabbed their asking price or more.

During April, the median price of all closings was $367,500, a nearly 4% increase from the previous month but a 0.7% decline compared with last year, according to a monthly report from the Minneapolis Area Realtors.

“Homeowners sometimes panic when prices soften while buyers often rejoice,” said Jerry Moscowitz, president of Minneapolis Area Realtors, in a statement. “But it’s important to remember that it simply reflects the cross-section of homes selling and doesn’t necessarily affect your home’s value.”

During April, sellers listed 5,170 properties, nearly 30% fewer than last year. That caused the total number of homes for sale to post a 4.5% annual decline.  With far fewer new houses hitting the market than last year, buyers are acting fast. On average, houses sold in 45 days, more than twice as slow as last year but far quicker than normal.

At the current sale pace, there were enough houses for sale to last 1.5 months. The market is considered evenly balanced between buyers and sellers where there’s a four- to six-month supply of listings.  Statewide, the trends were similar. Pending sales were down 29%, and new listings were down nearly as much, according to a separate report the Minnesota Realtors released. That report, which includes every region of the state, showed the median price of all closings during the month was $335,000, a 1.5% decline from last year.

At the end of month, the total number of listings still on the market was up only 1%, slightly less than the metro average, according to the state association. The biggest decline in closings was in the Arrowhead region, where sales were down 43% compared to last year. Closings were down the least in the middle of the state in the North Central region, which saw a decline of just 21%.