Just in time for the holidays, homebuyers in the Twin Cities are getting the gift they’ve been wishing for: More available homes for sale. In November, the number of homes for sale in the Twin Cities metro was up from the previous year for the first time in more than three years.
In a market that has been defined by extremely low inventory, rising prices and fast-paced buyer competition, more homes for sale will help moderate and balance the market, as well as provide more choices to buyers.
Key insights from November 2018 (compared to Nov. 2017)*
- New listings: 3,992 | +13%
- Median sales price: $265,150 | +8%
- Pending sales: 3,862 | -5%
- Days on market: 52 | -8%
- Inventory: 10,181 | +2%
- Months’ supply: 2.1 | +10%
Where is all the new inventory?
Rising inventory is good news, especially for homebuyers who have been competing over the limited number of homes for sale, but some buyers will see the benefits of the increases sooner than others—at least for now.
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Currently, inventory gains remain primarily in the move-up and luxury price brackets. Inventory for the starter home bracket is still down year-over-year, though new listings for that segment are rising and existing inventory could move in a positive direction soon.
Inventory by price point
- <$300K: 4,181 | -3%
- $300K-$500K: 3,465 | +11%
- >$500K: 2,649 | +3.1%
Another positive note is mortgage rates fell by about a quarter of a percent since they reached highs in November. This, along with reduced price gains, should allow some buyers to stay in the market.
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.1% (2.8% for the whole state)
- Average rates for 30-year conforming mortgage: 4.75%
- New construction: Permits for single family units were down 19 percent, but townhome permits increased by 60 percent.
The long and the short of it
- Increased inventory will lead to more choices for buyers, and a softening on the upward pressure on prices, though prices are still rising.
- For homes under $300,000, expect continued high demand, though added inventory could help balance this segment.
- A return of mortgage rates to below 5 percent should help limit pricing more buyers out of the market.
Let’s get started
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Looking for more information about selling? Download the Ultimate Guide to Selling Your Home for tips and ideas from local professionals.
*Data courtesy NorthstarMLS for the 13-County Twin Cities metro area for November 2018
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: 49 | -17%
- Avg. sales price: $229,146 | +10%
- Pending sales: 67 | +6%
- Days on market: 71 | -17%
- Inventory: 349 | -23%
- Months’ supply: 3.5 | -22%
- New listings: 254 | +4%
- Avg. sales price: $224,899 | +11%
- Closed sales: 350 | -1%
- Days on market: 68 | -27%
- Inventory: 1,592| -19%Months’ supply: 4 | -20%
- New listings: 236 | +19%
- Avg. sales price: $193,122 | -1%
- Closed sales: 277 | +18%
- Days on market: 59 | -20%
- Inventory: 1,389 | +25%
- Months’ supply: 5 | +14%
Southeast Minnesota area
- New listings: 358 | +2%
- Avg. sales price: $214,578 | +6%
- Closed sales: 411 | +3%
- Days on market: 58 | -5%
- Inventory: 1,308 | +2%
- Months’ supply: 2.7 | +8%
St. Cloud area
- New listings: 80 | -23%
- Avg. sales price: $191,524 | +10%
- Pending sales: 86 | -25%
- Days on market: 56 | -20%
- Inventory: 394 | -20%
- Months’ supply: 2.6 | -21%
Northwestern Wisconsin area
- New listings: 577 | +20%
- Avg. sales price: $173,731 | +10%
- Closed sales: 601 | +4%
- Days on market: 151 |-23%
- Inventory: 6,260 | -8%
- Months’ supply: 14.3 | -28%