Key insights from March 2022 (compared to March 2021)*
- New listings: 6,416 | -4.8%
- Median sales price: $353,000 | +7.5%
- Closed sales: 3,934 | -10.4%
- Pending sales: 5,252 | -9.2%
- Days on market: 35 | -10.3%
- Inventory: 5,004 | -12.1%
- Months’ supply: 0.9 | -10.0%
Warmer weather kicks Minneapolis-St. Paul activity into high gear, but metrics lag behind year prior
The long and the short of it
- Median pricing took another step forward, with the average home selling for $353,000.
- The inventory of homes for sale crept a little higher, but remained below even a single month’s supply.
- Sellers continue to hold an advantage, with no influx of inventory expected in the near future.
The advent of March brought with it an expected rise in residential real estate sales activity, with more homes selling at a higher price and more quickly, although some numbers continued to lag behind 2021 highs.
The median sales price for homes in the 13-county Twin Cities metro area rose $13,000 to $353,000, a significant rise from February pricing. The high is a new market record, and represents a 7.5% gain over 2021’s then-record median price.
Sellers are on average realizing 102.7% of their original list price, up from 101.9% last March and not far from last summer’s high of 104.1%.
One of the main factors driving prices upward is a shortage of homes available for sale. At the end of March, just 5,004 homes were available, a slight upturn from February but still a 12.1% decrease from March 2021. Just two years ago, more than 10,000 homes were available for sale in March.
At the current pace of sales, the homes on the market represent just a 0.9-month supply. A market is typically considered balanced when there’s closer to a six-month supply of homes for sale, a mark the Twin Cities hasn’t seen since 2011. The market has certainly favored sellers since then.
In order to get the homes they’re after, buyers are having to make strong offers, and quickly. The typical home spent 35 days on the market in March, down from 39 days in March 2021. Even in an active, seller-friendly market in 2020, homes were spending about two months on the market.
If the supply-and-demand forces weren’t putting enough pressure on buyers, a forecast rise in interest rates is pushing activity to move even more quickly. Some buyers may decide to act a little earlier than planned in order to get their mortgages at a lower rate.
The factors listed above have inspired a fervor on the part of buyers, but overall sales do still remain down year over year, thanks largely to the low inventory. In March, 3,934 sales closed, a 10.4% dropoff from March 2021. Year-to-date sales are also down 10.6% from 2021’s record-setting pace.
So far, there doesn’t seem to be any indication that April will see a rise in total sales, with 5,252 pending sales at month’s end. That’s down 9.2% from April 2021.
One positive sign for buyers, who may be looking for one: New listings were a bit more favorable in March. 6,416 homes were listed for sale in the month, down just 4.8% from 2021.
As the weather shifts slowly from kind-of-spring to full summer over the next month or so, the temperature won’t be the only thing that heats up. But any buyers hoping for a sudden influx of inventory may be disappointed, meaning this spring or summer could be their best chance to act quickly and finish their home search.
As you begin your home search, 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.Get your free guide
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.4% (as of February 2022)
- Average rates for 30-year conforming mortgage 5%**
- Interest rates haven’t been at 5% or higher since 2018, according to Freddie Mac.
Ready to help
We are here to help you confidently navigate your housing needs, now and always. 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.
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*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for March 2022.
**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 % changes are year-over-year.
- New listings: 50 | -61%
- Avg. sales price: $245,135 | +7%
- Pending sales: 45 | -60%
- Days on market: 37 | -37%
- Inventory: 84 | -21%
- Months’ supply: 0.8 | -11%
- New listings: 248 | -53%
- Avg. sales price: $293,104 | +24%
- Closed sales: 168 | -42%
- Days on market: 48 | -14%
- Inventory: 419 | -17%
- Months’ supply: 0.90 | -10%
Lake Superior area
- New listings: 315 | -20%
- Avg. sales price: $252,228 | +7%
- Closed sales: 207 | na
- Days on market: 36 | -43%
- Inventory: 414 | -27%
- Months’ supply: 1.2 | -20%
Southeast Minnesota area
- New listings: 389 | -41%
- Avg. sales price: $278,004 | +5%
- Closed sales: 230 | -43%
- Days on market: 48 | +9%
- Inventory: 420 | -10%
- Months’ supply: 0.8 | na
St. Cloud area
- New listings: 85 | -60%
- Avg. sales price: $241,978 | +1%
- Pending sales: 82 | -60%
- Days on market: 41 | na
- Inventory: 88 | -31%
- Months’ supply: 0.6 | -25%
- New listings: 177 | -18%
- Avg. sales price: $266,251 | +23%
- Pending sales: 159 | -11%
- Days on market: 79 | -29%
- Inventory: 160 | -22%
- Months’ supply: 0.9 | -10%
Northwestern Wisconsin area
- New listings: 469 | -20%
- Avg. sales price: $282,462 | +19%
- Closed sales: 315 | -16%
- Days on market: 97 | -15%
- Inventory: 1,053 | -24%
- Months’ supply: 2.0 | -23%
West Central Minnesota area
- New listings: 158 | -45%
- Avg. sales price: $194,564 | +20%
- Pending sales: 136 | -54%
- Days on market: 54 | -25%
- Inventory: 348 | -24%
- Months’ supply: 1.3 | -24%
- New listings: 77 | -3%
- Median sales price: $275,000 | +49%
- Pending sales: 57 | -20%
- Inventory: 74 | +30%
- Months’ supply: 1.3 | +44%
Leech Lake and surrounding area
- New listings: 48 | +26%
- Median sales price: $229,950 | -5%
- Pending sales: 46 | +12%
- Days on market: 21 | -73%
- Inventory: 64 | +33%
- Months’ supply: 1.2 | +71%
Little Falls area
- New listings: 27 | +59%
- Median sales price: $179,950 | +15%
- Pending sales: 27 | +23%
- Days on market: 10 | +44%
- Inventory: 14 | -22%
- Months’ supply: 0.6 | -14%
Southwest Minnesota area
- New listings: 109 | +12%
- Median sales price: $146,000 | +9%
- Pending sales: 90 | -15%
- Days on market: 56 | -35%
- Months’ supply: 1.5 | -21%
- New listings: 112 | -5%
- Median sales price: $225,250 | +33%
- Pending sales: 82 | -22%
- Days on market: 47 | -34%
- Months’ supply: 1.4 | +59%