Metro-area homebuyers enthusiastic, but take their time.

Byline: Matt M. Johnson

An increase in closed Twin Cities home sales last month showed that buyers were still enthusiastic in the housing market, even though it may have taken some a bit longer to decide on their dream homes.

Buyers closed on 5,358 homes in the 16-county Twin Cities region in September, up 3.4% from 5,184 sales a year earlier, according todata releasedWednesdayby theMinneapolis Area Realtors. Pending sales, an indicator for the housing market, also rose in September, bumping up 2.9% during the month to 4,957 contracts signed.

The increase in pending sales was the third in three consecutive months, said David Arbit, MAR's research director. The trend shows that buyers aren't holding back out of fear that the market might be reaching a point of instability, he said in a Thursday interview.

"If people are fearful prices are too high or we're going to see a recession, they wouldn't be closing on as many deals," he said.

The median selling price for metro houses sold during the month did increase, up 6.6% to $279,250. Selling prices have increased by single-digit amounts every month in 2019, MAR's data shows. Also rising in September was the number of days homes spent on market, which went up from 42 to 43 days, compared with the same time last year. The increase was the fifth during the past 12 months and could be an indicator that buyers are willing to take more time to shop, Arbit said.

"It does seem like there is less urgency," he said.

Playing the waiting game may not mean that buyers will see much more in the way of choices in the market. The Twin Cities inventory of homes for sale fell 5.6 % year over year in September to 12,478. That inventory is also down from May, June, July and August.

With the drop in the inventory, the metro's supply of homes also dropped, falling from 2.5 months in September 2018 to 2.4 months this year.

However, new listings during the month increased 2.5% to 7,041. That could mean more choices for buyers are on the way, said Todd Urbanski, a Realtor with Wayzata-based Fazendin Realtors and MAR's president.

"To see the number of sellers on the market somewhat greater than the number of buyers on the market is somewhat promising," he said in an interview.

September sales, though up from a year before, were down...