(FOX 9) - A limited housing supply contributed to a drop in home sales in July compared to last year, according to the latest monthly Minnesota Realtors report.
The overall supply of homes for sale was down 29.7% compared to 2020. Demand continues to stay high, driving the median sales price up 12.5% more than last year, marking another historic high of $315,000. Homes are are spending less time on the market, just 25 days, which Minnesota Realtors calls "an unprecedented low."
Amid the lower supply, July saw an 8.7% dip statewide in closed sales compared to last year.
"Even though potential sellers were almost guaranteed to get their asking price, they were reluctant to list their homes because they didn’t want to become buyers in this hyper competitive environment," said Chris Galler, CEO of Minnesota Realtors in a statement.
Galler said part of the solution to the current housing market depends on building more affordable housing throughout the state.