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Metro Home Prices Hit Median Sales Price of $342,500
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Twin Cities housing market stays strong as median price hits $342,500 in May
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The Twin Cities has a dearth of new and existing homes for sale, but local builders did their part in May to create new supply as permits were up for both single-family and multifamily housing units.
Even so, homebuilders say they could add even more supply if not for constraints that include the metro area’s shortage of developable lots, pandemic-induced supply chain disruptions and a lack of construction labor.
David Siegel, executive director of Housing First Minnesota, said the Twin Cities market needs the additional supply. Homes are selling quickly, prices are rising, and inventory of new and existing homes is low, he noted.
The number of homes for sale in the Twin Cities returned to pre-pandemic levels last month, but inventory remains low because demand for housing is outpacing supply, according to Minneapolis and St. Paul Realtors.
In April, sellers listed 7,468 residential properties, up 21.7% from April 2020, the Minneapolis Area Realtors and Saint Paul Area Association of Realtors said Monday. The April 2021 numbers are on par with what the market saw in 2018 and 2019.
Meanwhile, the average price of a home in the 16-county metro area rose to a record high of $337,000. Despite the higher prices, the Realtors said, half of the homes for sale go “under contract” within eight days of listing, the “fastest time in at least 14 years.”
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