Housing Inventory Rises Nationally For First Time In Years

(KNSI) – Central Minnesota is still a seller’s real estate market, but there are signs of change nationally.

Realtor.com reports that home listings rose in May by 8% in the United States when compared to the same time in 2021. It is the first yearly increase since before the pandemic. The number of sales is down significantly. That means homes are staying on the market longer and the dynamic will help cool off price gains.

St. Cloud Area Association of Realtors President Kelly Schepers says the local market isn’t showing the same amount of change. Area inventories fell by 1.7 percent in central Minnesota in May. Schepers says pending sales are down roughly 15%, so listings are taking longer to turn into closings, but the difference is small. Schepers says it is too early to say the market is in transition to a more buyer-friendly climate.

Realtor.com says pending inventory continues to drop, so the May numbers could reverse in the coming months. It says even with the recent increase in active listings, they’re still down by 48.5 percent compared to the start of the pandemic.

Schepers says higher mortgage rates and price appreciation is scaring away some potential buyers. If that continues, sellers may be more eager to list their home as soon as possible over concerns about what the future might bring.

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