House prices in Minneapolis experience sharp year-over-year increase
MINNEAPOLIS, MN – Looking for a new home on a budget? Finding the right home for the right price can be difficult in Minneapolis, as house prices continue to rise here and in other parts of the United States, according to a new report from online real estate company Redfin.
The report released Thursday analyzed US real estate market conditions in July 2021 compared to July 2020. To compile the report, Redfin looked at median home prices by metro area, number of homes sold, new listings, and more.
In Minneapolis, the median price of homes sold in July rose 11.1% from the previous year. The median price of homes in our city was $ 350,000.
Despite rising home prices, the number of homes sold in Minneapolis has declined from the same time last year. According to the report, 6,849 homes were sold in July, down 3.6% from July 2020 and down 10.9% from last month.
July marked the 12th consecutive month of nationwide house price increases, according to data from Redfin. At the end of the month, the median price of homes sold across the country hit a new record high of $ 385,600, up nearly 20% from the previous year.
July 2021 also marked the fourth consecutive month in which no metro has seen its prices drop.
Redfin chief economist Daryl Fairweather said house prices were skyrocketing at an “amazing rate”, making it even more difficult for potential buyers to own a home.
For those who can afford a home, the market is slowly becoming less competitive, Fairweather said in the report. This means that potential buyers will have more options, but it may be worth the wait to find the right home at the right price.
âDemand has slowed enough that homes aren’t leaving the market as quickly or for as much above list price as they did in the spring,â Fairweather said. “Mortgage rates remain about as low as they’ve ever been, so buyers who lose out in a bidding war don’t have to worry about missing their window to buy.”
Explaining the rise in house prices is proving more difficult.
âNow that we are one year away from the post-containment rebound, we can no longer explain the huge price growth by highlighting the initial impacts of the pandemic on the housing market,â Fairweather said.
Here are some additional numbers that illustrate how the Minneapolis real estate market has changed amid the coronavirus pandemic:
New housing announcements
- July 2021 announcements: 7,519
- Month-to-month change: 5.8% decrease
- Annual change: increase of 0.8%
All houses for sale
- July 2021 announcements: 13,979
- Month-to-month change: 2.1% increase
- Annual change: decrease of 15.1%
When it comes to home prices, Austin, Texas has seen the strongest price growth in the country. Home prices there are up 38.6% from last year to $ 485,000. Phoenix recorded the second strongest year-over-year growth at 28.1%, followed by Salt Lake City at 26.1%.
Meanwhile, New York City led the country in year-over-year sales growth, up 79%. Richmond, Va. Saw the biggest drop in sales, dropping 52.3%.
On the options front, Milwaukee recorded the largest increase in the number of homes for sale, up 3.1% from a year ago, followed by Columbus, Ohio, and Virginia Beach, Virginia.
See the full report on the Redfin website.