August 2020 Market Insights

Key insights from July 2020 (compared to July 2019)*

• New listings: 7,961 | +0.8%
• Median sales price: $312,500 | +10.4%
• Pending sales: 6,866 | +10.3%
• Days on market: 41 | +7.9%
• Inventory: 9,348 | -28%
• Months’ supply: 1.9 | -29.6%

A busy July market continued the trend of high buyer interest amid inventory challenges

Suburban real estate is rebounding nationwide, much of it catalyzed by the work and lifestyle changes brought on by the pandemic. According to the National Association of Realtors, a growing number of urban hipsters are trading in cosmopolitan chic for sprawling green lawns and cul-de-sacs as people search for more space.

Healthy buyer demand and constrained supply continue to be the story for much of the country. Nationally, showing activity in July remained substantially higher than a year before and multiple offer situations were a frequent experience in many markets. This competitive market for buyers shows little sign of waning.

New listings in the Twin Cities region increased slightly to 7,961. Pending sales were up 10.3% to 6,866. Inventory levels fell 28% to 9,348 units.

Prices continued to gain traction. The median sales price increased 10.4% to $312,500. Days on market was up 7.9% to 41 days. Sellers were encouraged as months’ supply of homes for sale was down 29.6% to 1.9 months.

While the number of unemployment insurance weekly initial claims have been far lower in recent weeks than their peak in March and April, more than 1 million new claims are still being filed each week with more than 31 million people claiming benefits in all programs as of early July, compared to fewer than two million in July 2019. Despite this significant economic impact, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels, high buyer activity is expected to continue into the late summer and early fall market.

As you begin your home search through virtual tours and safe showings, 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: 9.2% (as of June 2020)
• Average rates for 30-year conforming mortgage 2.99%**
• The average sales price increased significantly to $358,735.
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 100.1% of their original list price in July.
• Pending sales and new listings were both higher than last year.
• The effect of COVID-19 on seller confidence continues to impact the housing market. See how Edina Realty is working to keep you safe during COVID-19.

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 July 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.

Alexandria Area

• New listings: 176 | +9%
• Avg. sales price: $265,619 | +12%
• Pending sales: 182 | +56%
• Days on market: 47 | -2%
• Inventory: 297 | -39%
• Months’ supply: 2.9 | -41%

Brainerd area

• New listings: 718 | -17%
• Avg. sales price: $278,897 | +19%
• Closed sales: 791 | +34%
• Days on market: 68 | +17%
• Inventory: 1,347 | -46%
• Months’ supply: 2.9 | -49%

Duluth area

• New listings: 590 | -8%
• Avg. sales price: $220,600 | +6%
• Closed sales: 536 | +21%
• Days on market: 46 | +7%
• Inventory: 1,363 | -20%
• Months’ supply: 4.4 | -19%

Southeast Minnesota area

• New listings: 694 | -17%
• Avg. sales price: $249,540 | +5%
• Closed sales: 761 | +20%
• Days on market: 48 | +9%
• Inventory: 988 | -37%
• Months’ supply: 1.8 | -42%

St. Cloud area

• New listings: 202 | -17%
• Avg. sales price: $225,234 | +5%
• Pending sales: 228 | +30%
• Days on market: 41 | no change
• Inventory: 281 | -40%
• Months’ supply: 1.9 | -39%

Northwestern Wisconsin area

• New listings: 1,145 | +7%
• Avg. sales price: $170,000 | -7%
• Closed sales: 1,039 | +34%
• Days on market: 171 |+16%
• Inventory: 5,847 | -16%
• Months’ supply: 10.0 | -15%

West Central and Southwest Minnesota area

• New listings: 361 | -17%
• Avg. sales price: $171,199 | +3%
• Pending sales: 334 | +6%
• Days on market: 70 |-10%
• Inventory: 922 | -27%
• Months’ supply: 3.7 | -33%

Bemidji area

• New listings: 83 | -19%
• Median sales price: $186,000 | +4%
• Closed sales: 80 | +25%
• Inventory: 141 | -36%
• Months’ supply: 2.8 | -39%

Leech Lake and surrounding area

• New listings: 76 | -41%
• Median sales price: $238,500 | +8%
• Pending sales: 114 | +65%
• Days on market: 49 |+104%
• Inventory: 211 | -51%
• Months’ supply: 3.7 | -56%

Little Falls area

• New listings: 38 | +3%
• Median sales price: $168,950 | -18%
• Pending sales: 40 | +38%
• Days on market: 22 |+22%
• Inventory: 54 | -19%
• Months’ supply: 2.3 | -18%