Key insights from March 2020 (compared to March 2019)*
- New listings: 7,220 | +16%
- Median sales price: $297,000 | +8%
- Pending sales: 5,148 | +11.2%
- Days on market: 60 | -9.1%
- Inventory: 8,597 | -11.3%
- Months’ supply: 1.7 | -15%
The strength of the market prior to COVID-19 offers hope for an optimistic rebound
According to recent data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the number of Twin Cities residential real estate showings in mid-April indicates the first signs of a turnaround since they began declining during the onset of the coronavirus in mid-March.
The monthly report for March, with a 16% gain in new listings and 11.2% increase in pending and closed sales, paints only a partial picture of the current real estate market. The numbers don’t fully reflect the impact of COVID-19 when the stay at home order was implemented for the second half of the month. Most March sales reflect purchase agreements that were finalized in January and February. The April numbers will offer a far more accurate view of COVID-19’s impact on the Twin Cities housing market – from sales, listings and inventory to market times and home prices.
Both new listings and pending sales saw declines in the second half of March and into April. New listings began to decline around March 26 and are now roughly 36.8% below their 2020 peak. The decline in buyer activity was earlier but not as severe. Pending sales began to decline around March 18 and are now about 19.1% below their peak.
For March overall, the median Twin Cities home price was up 8.0% to $297,000. Mortgage rates on a 30-year fixed loan continue to be low and are now around 3.4%. So far, there has not been a significant impact on home prices. The undersupplied market, particularly in starter homes, should also shield prices.
While the impact of COVID-19 is varied throughout the country and the world, we are likely to continue to see adjustments to housing activity in the coming months. Although mortgage rates continue to be low, lenders are tightening underwriting standards, making it more difficult for some borrowers to get approved for a loan. Massive layoffs across the country will also continue to alter the housing market.
Despite these challenges, recent showing activity that had previously leveled off is now on the rise again and there is reason to be optimistic that market activity will quickly rebound as the current pandemic subsides.
As you begin your home search through virtual showings and video tours, find out everything you need to know about buying—get the Go-To Guide for Buying a Home. It’s free and full of answers to your home buying questions.
Economic check up
- Minneapolis-St. Paul area unemployment rate: 3.1% (as of February 2020 – this is rapidly changing)
- Average rates for 30-year conforming mortgage: 3.31%**
- The median sales price increased 8%
The long and the short of it
- Prices continue to rise year-over-year; the March average sales price was $338,116.
- Sellers received 99.2% of their original list price in March.
- The average, cumulative number of days on the market decreased to 60 days.
Ready to help
We are here to help you safely and confidently navigate your housing needs, now and always. We have options to assist you through innovative technology and by using diligent safety precautions. Whether you are researching future options or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance. Your wellness and safety continue to be our top priority.
Download the Ultimate Guide to Selling Your Home for tips and ideas from local professionals.
*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for March 2020.
**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.
Where you live
Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All percent changes are year-over-year.
- New listings: 137 | +5%
- Avg. sales price: $206,157 | -5%
- Pending sales: 100 | +30%
- Days on market: 91 | -2%
- Inventory: 298 | -12%
- Months’ supply: 2.9 | -12%
- New listings: 551 | +5%
- Avg. sales price: $236,553 | +8%
- Closed sales: 243 | -4%
- Days on market: 86 | -7%
- Inventory: 1,297 | -20%
- Months’ supply: 3.2 | -22%
- New listings: 405 | -1%
- Avg. sales price: $213,351 | +15%
- Closed sales: 199 | -13%
- Days on market: 74 | +9%
- strong>Inventory: 1,156 | +6%
- Months’ supply: 3.8 | +9%
Southeast Minnesota area
- New listings: 690 | +8%
- Avg. sales price: $238,826 | +13%
- Closed sales: 438 | +16%
- Days on market: 68 | -1%
- Inventory: 1,099 | -13%
- Months’ supply: 2.0 | -20%
St. Cloud area
- New listings: 196 | +1%
- Avg. sales price: $210,315 | +5%
- Pending sales: 176 | +26%
- Days on market: 59 | -2%
- Inventory: 301 | -21%
- Months’ supply: 1.9 | -27%
Northwestern Wisconsin area
- New listings: 870 | +9%
- Avg. sales price: $182,463 | +3%
- Closed sales: 458 | +5%
- Days on market: 176 |-2%
- Inventory: 5,511 | -3%
- Months’ supply: 10.8 | -15%
West Central and Southwest Minnesota area
- New listings: 296 | +13%
- Avg. sales price: $149,624 | +6%
- Pending sales: 266 | +28%
- Days on market: 85 |-21%
- Inventory: 917 | -7%
- Months’ supply: 3.7 | -16%
- New listings: 263 | +42%
- Avg. sales price: $190,130 | +8%
- Pending sales: 178 | +16%
- Days on market: 139 |+14%
- Inventory: 521 | +8%
- Months’ supply: 2.9 | no change
- New listings: 75 | +17%
- Median sales price: $189,750 | +20%
- Closed sales: 24 | -4%
- Inventory: 151 | -4%
- Months’ supply: 3.1 | -9%
Leech Lake and surrounding area
- New listings: 78 | +26%
- Median sales price: $287,000 | +69%
- Pending sales: 21 | -13%
- Days on market: 97 |+29%
- Inventory: 247 | +6%
- Months’ supply: 5.1 | +21%
Little Falls area
- New listings: 32 | +14%
- Median sales price: $170,000 | +13%
- Pending sales: 13 | -24%
- Days on market: 24 |-31%
- Inventory: 49 | +20%
- Months’ supply: 2.2 | +22%