December 2020 Market Insights

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

• New listings: 4,035 | +1.3%
• Median sales price: $310,000 | +10.7%
• Closed sales: 5,624 | +18.6%
• Pending sales: 4,640 | +13.4%
• Days on market: 34 | -33.3%
• Inventory: 6,642 | -37.9%
• Months’ supply: 1.2 | -42.9%

Home sales’ longer-than-average autumn gets a little longer, November activity up significantly

The Twin Cities real estate market continued to perform as if it got a 60-day late start in 2020, with sales activity looking more like a strong September than a typical November.

Every metric indicating activity and competition moved accordingly in November. Perhaps most notably, closed sales ended the month at 5,624, an 18.6 percent jump from the same month in 2019, which itself was already a historically strong month for the region.

In fact, Novembers over the past decade have seen closed sales more in the high 3,000s or low 4,000s. 5,600 sales is more typical of a September or October, again suggesting that the COVID-19 pandemic caused more of a delay in market activity than an interruption.

Pending sales ended the month at 4,640, up 13.4 percent from November 2019 and a positive omen for the sales activity to come in December. Closed sales are up 6.5 percent so far this year and will cross the 60,000 mark before the end of December, with potential to surpass the highs of just over 61,000 sales from 2016 and 2017.

The strong activity from buyers continues to push pricing upward. The median sales price in November was $310,000, up 10.7 percent from 2019. That makes six months in a row with a median price above $300,000, a high water mark this market hadn’t reached at any point until April.

Sellers received 100.2 percent of their asking price in November, another suggestion that buyers are competing and having to come in with offers above asking price to win bidding processes. Year-to-date, sellers are receiving 99.8 percent of their asking price.

Doubtless that pricing is affected by a low inventory of homes for sale, particularly starter homes. There are now just 6,642 homes for sale in the metro area, down 37.9 percent from this point last year. The inventory represents about a 1.2-month supply. A market balanced between buyers and sellers typically carries about six months’ worth of homes for sale.

New listings continue to pop up, but haven’t risen as dramatically as sales. There were 4,035 new listings in November, a slight uptick of 1.3 percent from 2019. New listing activity year-to-date has tracked consistently with the past couple of years, with totals within a few hundred homes so far.

Most consider spring the ultimate time to sell, but with inventory so limited, sellers could seize on a golden opportunity and maximize their return on investment. No large surge of inventory is expected to be on the way, so sellers can expect the market to remain strong for them into 2021.

Edina Realty and other Realtors have established safe practices to reduce the risk of COVID-19 exposure while selling.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.2% (as of October 2020)
• Average rates for 30-year conforming mortgage 2.67%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 100.2% of their original list price in November.
• Closed sales were significantly higher than last year, while new listings were up slightly.
• 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.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for November 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: 47 | -33%
• Avg. sales price: $285,177 | +46%
• Pending sales: 69 | +6%
• Days on market: 48 | -21%
• Inventory: 162 | -60%
• Months’ supply: 1.5 | -63%

Brainerd area

• New listings: 270 | +0%
• Avg. sales price: $286,915 | +32%
• Closed sales: 509 | +19%
• Days on market: 55 | -27%
• Inventory: 758 | -59%
• Months’ supply: 1.5 | -63%

Duluth area

• New listings: 218 | +4%
• Avg. sales price: $237,136 | +24%
• Closed sales: 372 | +21%
• Days on market: 47 | -16%
• Inventory: 871 | -35%
• Months’ supply: 2.5 | -40%

Southeast Minnesota area

• New listings: 352 | -20%
• Avg. sales price: $253,065 | +16%
• Closed sales: 525 | +2%
• Days on market: 42 | -19%
• Inventory: 723 | -50%
• Months’ supply: 1.3 | -54%

St. Cloud area

• New listings: 86 | -21%
• Avg. sales price: $237,239 | +17%
• Pending sales: 121 | +19%
• Days on market: 38 | -33%
• Inventory: 204 | -47%
• Months’ supply: 1.3 | -48%

Northwestern Wisconsin area

• New listings: 347 | +5%
• Avg. sales price: $246,818 | +26%
• Closed sales: 551 | +7%
• Days on market: 100 | -7%
• Inventory: 1,673 | -30%
• Months’ supply: 3.1 | -34%

West Central and Southwest Minnesota area

• New listings: 191 | -5%
• Avg. sales price: $185,903 | +24%
• Pending sales: 217 | +10%
• Days on market: 68 | -24%
• Inventory: 694 | -37%
• Months’ supply: 2.6 | -46%

Bemidji area

• New listings: 37 | +42%
• Median sales price: $205,500 | +37%
• Pending sales: 44 | +47%
• Inventory: 84 | -52%
• Months’ supply: 1.4 | -58%

Leech Lake and surrounding area

• New listings: 28 | +40%
• Median sales price: $245,500 | +9%
• Pending sales: 57 | +73%
• Days on market: 34 | -46%
• Inventory: 113 | -57%
• Months’ supply: 1.8 | -65%

Little Falls area

• New listings: 20 | +100%
• Median sales price: $196,000 | +31%
• Pending sales: 19 | +6%
• Days on market: 19 |-62%
• Inventory: 29 | -57%
• Months’ supply: 1.1 | -65%