August 2019 Market Insights

Key insights from July 2019 (compared to July 2018)*

• New listings: 7,827 | +1.8%
• Median sales price: $283,700 | +5.9%
• Pending sales: 6,161 | +3.2%
• Days on market: 38 | 0%
• Inventory: 11,961 | -4.4%
• Months’ supply: 2.4 | -4.0%

Interest rates drop again, driving sales growth

July brought a busy real estate market to the Twin Cities region. When compared to July of last year, new listings rose 1.8 percent and pending sales rose 3.2 percent. Home prices continue to gain traction with the median sales price increasing 5.9 percent to $283,700. Mortgage rates drop again, a likely reason for so much activity.

Despite lower interest rates and modest inventory gains, there are still a shortage of homes on the market and affordability challenges. Price increases and wage gains are more aligned now than in the past but the market remains highly competitive for the under $300,000 segment.

Metrics to watch aside from sales and prices include market times, the ratio of sold to list price and months of supply. These three indicators could be hinting at potential market shifts ahead. That said, home price declines are unlikely until absorption rates rise above six months. We’re currently at 2.4 months.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.3%
• Average rates for 30-year conforming mortgage: 3.6%**
• Buyers closed on 6,628 homes, a 4.5 percent increase
• Condo sales increased 2.2%
• Townhome sales increased 0.8%
• Single family sales increased 6.0%
• New construction sales rose 4.5%

The long and the short of it

• Sellers listed 7,827 properties on the market, a 1.8 percent increase from last July.
• The median sales price rose 5.9 percent to $283,700.
• July saw increases in new listings, pending sales and closed sales.
• Lower price points remain in high demand and still favor sellers.

Let’s get started

Your home is unique and so is your story. You deserve more than a computer-formulated look at your home’s value. Connect with a real person with real experience and local expertise to see what your home could sell for. Reach out for a free home analysis from a market expert in your area.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for July 2019.

**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.

Alexandria area

• New listings: 165 | +1%
• Avg. sales price: $243,573 | +3%
• Pending sales: 104 | -20%
• Days on market: 48 | -8%
• Inventory: 479 | -12%
• Months’ supply: 5.1 | -7%

Brainerd area

• New listings: 753 | +2%
• Avg. sales price: $239,538 | +4%
• Closed sales: 520 | -4%
• Days on market: 52 | -17%
• Inventory: 2,125 | -7%
• Months’ supply: 5.5 | -5%

Duluth area

• New listings: 633 | +12%
• Avg. sales price: $209,040 | +1%
• Closed sales: 437 | +5%
• Days on market: 43 | -9%
• Inventory: 1,815 | +4%
• Months’ supply: 6.0 | -12%

Southeast Minnesota area

• New listings: 828 | +16%
• Avg. sales price: $239,594 | +7%
• Closed sales: 622 | +7%
• Days on market: 44 | -21%
• Inventory: 1,523 | +8%
• Months’ supply: 3.0 | +3%

St. Cloud area

• New listings: 243 | +17%
• Avg. sales price: $216,012 | +5%
• Pending sales: 175 | +7%
• Days on market: 40 | -9%
• Inventory: 453 | +6%
• Months’ supply: 3.0 | +7%

Northwestern Wisconsin area

• New listings: 1,066 | -5%
• Avg. sales price: $183,073 | +5%
• Closed sales: 775 | -3%
• Days on market: 148 |-11%
• Inventory: 6,956 | -3%
• Months’ supply: 11.8 | -10%

West Central and Southwest Minnesota area

• New listings: 425 | +32%
• Avg. sales price: $165,087 | -1%
• Pending sales: 308 | +51%
• Days on market: 78 |-11%
• Inventory: 1,195 | +10%
• Months’ supply: 5.4 | -2%