The housing shortage is growing in most regions of greater Minnesota, putting upward pressure on prices. That's according to the latest report from the Minnesota Association of Realtors (MAR), which said there were 2,245 fewer new listings statewide compared with last year, causing the inventory of for-sale properties to fall to the lowest level since 2005. With few options, many buyers are having trouble finding a property, so closings fell 1.8 percent during the month. Still, the median price of those sales rose 14.8 percent to $155,000.
"There are many buyers out in the marketplace waiting for more properties to consider," said Jim Cormier of Building Sites Inc. and MAR's president.
That statewide data mirrors one released earlier this month for the Twin Cities metro area, which also saw dramatic declines in new listings, a slight decline in closings and a double-digit increase in the median price of those deals.
The report shows that while the market statewide is improving, the recovery is happening unevenly throughout the state. Sales are still struggling in parts of the state where the local economy has yet to improve, making it tough to find jobs. And regions that rely heavily on second homes and recreational properties are also seeing a less robust recovery because the unseasonably chilly weather has made it difficult - or unappealing - for shoppers.