Minnesota homebuyers had more options in November, when sales increased for a second month

Homebuyers outpaced sellers in much of the state last month, boosting home prices in virtually every corner of Minnesota.

Last month, buyers in the Twin Cities metro signed 3,133 purchase agreements, a nearly 12% increase compared to last year, according to local and state Realtors associations. New listings in the metro were essentially flat, causing the median price of all closings to increase as well, rising 3.4% to $375,000.

Statewide, pending sales were up nearly double digits, increasing for the second consecutive month while new listings declined. Nearly a quarter of the state’s 14 economic development regions posted annual gains in new property listings, while more than half those areas posted an increase in pending sales. Prices increased in every region, causing the median price statewide to rise 4.4% to $340,000.

Geri Theis, president of Minnesota Realtors, said in a statement buyers in her region of the state — southeastern Minnesota — are benefiting from the most inventory since 2019.

“We’re at a time of year when buyers can take advantage of a slower pace and a calmer, less competitive environment,” Theis said.

Mortgage rates have been hovering at around 7% for the past several months, and while they’ve been bouncing around, rates ticked down during much of November. That eased the pressure on buyers who might have worried rates would increase.

Mortgage rates have declined for three consecutive weeks, with the average 30-year fixed-rate mortgage falling to 6.6% as of Dec. 12, according to the latest weekly survey from Freddie Mac. During the previous week, the 30-year rate averaged 6.69%. A year ago, it averaged 6.95%.

Though buyers were active during the month, they took more time to make a decision. In the metro, houses typically sold in 50 days, a 25% increase from last year. Sales took slightly longer in Minneapolis but more quickly in St. Paul. Statewide, houses sold in about 45 days.

“I see buyers showing more interest yet also being more cautious,” said Jamar Hardy, president of Minneapolis Area Realtors, in a statement. “And part of that is that they’re slowly but surely seeing more options hit the marketplace.”