The year got off to a strong start … Pending sales rose 3.5 percent to 3,033 signed contracts; new listings decreased 7.2 percent to 4,167 homes. In light of that, it’s no surprise that inventory levels fell 22.2 percent to 10,065 active properties—the lowest figure on record since January 2003. The median sales price rose 10.3 percent to $215,000 and the median list price, which rose 6.1 percent to $259,900, was a record high. Cumulative days on market declined 15.8 percent to 85 days, which was a brisk pace for January.

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“We’re starting the year in the same low inventory environment in which we ended last year,” said Judy Shields, Minneapolis Area Association of REALTORS® (MAAR) President. “Record sales and rising prices should encourage sellers to list their home. That said, it’s critical that buyers have more choices as the year progresses.”

Single-family homes continued to dominate sales volume, even though townhomes had the strongest year-over-year gain. Previously-owned home sales increased at a faster pace than new construction, but not by much. Edina, St. Louis Park, Plymouth, Hopkins, Uptown and Southwest Minneapolis all saw record prices in 2015.

Information courtesy of Minneapolis Area Association of REALTORS® (MAAR), based on data from NorthstarMLS. MAAR is the leading regional provider of information services and research for the Twin Cities real estate industry.