Realtors, builders weigh in on the central Minnesota housing market

ST. CLOUD — It’s more of the same in the Central Minnesota housing market, with inventory continuing to tighten and sales prices increasing. But if you’re hoping to wait to buy or build new, industry insiders have news for you: They’re not expecting that trend to change any time soon.

According to market updates from the Minnesota Realtors, year-to-date new listings are down in Central Minnesota by 10.5% in 2021 compared to the same time frame (January through March) in 2020.

Premier Real Estate Services realtor and St. Cloud Area Association of Realtors Nancy Costanzo said while the decline in inventory has been going on for years now, the current inventory squeeze is the worst she’s seen in her career.

The housing market bubble burst in 2008 was driven by a large inventory of new construction homes. The problem then was that houses were sitting empty and wouldn’t sell, Central MN Realty realtor Shantel Waytashek said.

“We are 100% the opposite problem with that right now,” she said.

From January through March this year, the percent of original list price received in Central Minnesota reached 100%, up 2.9% from the same time frame last year, according to the Minnesota Realtors report.