The Twin Cities housing market continues to show signs of a shift to a buyers’ market.
The Minneapolis Area Association of Realtors (MAAR) on Wednesday released its report on September activity, which showed more homes listed during the month than the same period a year ago.
While it is still a sellers’ market with sales prices on the rise and limited supply, September saw the smallest decline in active listings since May 2015, and data pointed to the possibility that inventory gains, which would make the environment more friendly for buyers, could be around the corner.
“We’re entering a sort of transitional space,” said Kath Hammerseng, president of MAAR and an agent with Edina Realty. “We haven’t yet shifted toward a buyers’ market or even balance, but we’re likely heading that way.”
In September, there were 6,857 new home listings in the Twin Cities, a 5.9 percent increase from a year ago, according to the monthly report. It’s a turn from last September when new listings dropped 5.2 percent.
“Many buyers have been waiting for more sellers to jump in,” said Todd Urbanski, president-elect of MAAR. “The fact is, four of the last five months saw year-over-year gains in new listings.”
Still, the market remains tight especially for first-time buyers as many entry-level homes continue to garner multiple offers and sell for more than asking due to low inventory and high competition.
The median sales price increased 6.1 percent to $262,000, a record high for September. On average, homes sold in just 42 days, a 16 percent decrease from last year around this time.
Closed sales dropped 5.8 percent to 5,087, and pending sales declined 1.8 percent to 4,762 further indicating a market cool-down.