December 2021 Market Insights

Key insights from November 2021 (compared to November 2020)*

• New listings: 4,123 | +1.2%
• Median sales price: $339,000 | +9.4%
• Closed sales: 5,536 | -3.0%
• Pending sales: 4,740 | +0.8%
• Days on market: 30 | -11.8%
• Inventory: 6,110 | -18.6%
• Months’ supply: 1.1 | -21.4%

November real estate activity cools off from 2020 but remains historically hot

The long and the short of it

• Sales have slowed since 2020 but remain well above typical winter activity.
• Motivated buyers continue to drive strong pricing and quick closings, with the typical home selling in around about a month.
• After a couple of months of catch-up, inventory dropped again.

A first glance at November sales numbers for the Twin Cities real estate market might seem to show slowing activity, but the market remained well ahead of its usual pace, even if numbers did fall off somewhat from 2020.

5,536 sales closed in November 2021, down 3.0% from the same month last year. But that activity is still up more than 16.7% from the same period in 2019, which was already a historically busy month.

With 61,202 closings recorded so far this year, the market could withstand a 40% drop from last year in December and still post an all-time high in home closings.

While sales volume remains historically high, pricing continues to break records. The median home price in November was $339,000, up 9.4% from last year. The Twin Cities year-to-date median is $340,000, a mark which the metro hadn’t even hit in a single month until earlier this year.

Conditions remain extremely favorable for sellers, but something of a shift may have begun. November was the first time the percent of original list price dipped below 100% since January, settling in at 99.8%. The typical days on the market until a sale also increased to 30 days, the longest we’ve seen in the Twin Cities since April. Still, both of those numbers are very much on the side of a seller’s market. In late 2011, when the market was more balanced, sellers were receiving 91% of asking, with the average home spending 140 days on the market.

After spending the last several months on the upswing, the inventory of homes for sale dropped a bit in November. At month’s end, 6,110 homes were for sale, an 18.6% drop from 2020 levels. In November 2019, more than 10,000 homes were for sale. Until inventory numbers catch up even more, sellers continue to wield some leverage in negotiations.

Despite the holidays, early indications show December might be another busy month. Pending sales ended November at 4,740, up 0.8% from 2020.

As long as pricing remains this high and closings occur so quickly after listing, sellers are likely to be attracted to the market, and buyers are likely to move competitively.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.6% (as of October 2021)
• Average rates for 30-year conforming mortgage 3.12%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

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.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for November 2021.

**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.

Alexandria Area

• New listings: 72 | +10%
• Avg. sales price: $267,418 | -6%
• Pending sales: 86 | +19%
• Days on market: 38 | -21%
• Inventory: 133 | -27%
• Months’ supply: 1.20 | -29%

Brainerd area

• New listings: 282 | 0%
• Avg. sales price: $310,814 | +9%
• Closed sales: 515 | -2%
• Days on market: 33 | -41%
• Inventory: 628 | -32%
• Months’ supply: 1.30 | -28%

Lake Superior area

• New listings: 229| +3%
• Avg. sales price: $268,226 | +13%
• Closed sales: 367 | -3%
• Days on market: 34 | -28%
• Inventory: 545 | -26%
• Months’ supply: 1.6 | -20%

Southeast Minnesota area

• New listings: 386 | +8%
• Avg. sales price: $271,783 | +8%
• Closed sales: 527 | 0%
• Days on market: 32 | -24%
• Inventory: 647 | -16%
• Months’ supply: 1.2 | -14%

St. Cloud area

• New listings: 105 | +22%
• Avg. sales price: $242,692 | +3%
• Pending sales: 135 | +11%
• Days on market: 29 | -24%
• Inventory: 165 | -26%
• Months’ supply: 1.0 | -29%

Mankato area

• New listings: 140 | +13%
• Avg. sales price: $229,981 | -3%
• Pending sales: 160 | +11%
• Days on market: 71 | -14%
• Inventory: 240 | -19%
• Months’ supply: 1.3 | -13%

Northwestern Wisconsin area

• New listings: 361 | +4%
• Avg. sales price: $253,909 | +3%
• Closed sales: 536 | -3%
• Days on market: 80 | -20%
• Inventory: 1,398 | -16%
• Months’ supply: 2.7 | -13%

West Central Minnesota area

• New listings: 205 | +6%
• Avg. sales price: $188,071 | +1%
• Pending sales: 264 | +20%
• Days on market: 47 | -32%
• Inventory: 493 | -30%
• Months’ supply: 1.8 | -33%

Bemidji area

• New listings: 29 | -22%
• Median sales price: $215,000 | +5%
• Pending sales: 45 | +2%
• Inventory: 87 | +4%
• Months’ supply: 1.4 | 0%

Leech Lake and surrounding area

• New listings: 26 | -7%
• Median sales price: $244,450 | 0%
• Pending sales: 41 | -28%
• Days on market: 19 | -44%
• Inventory: 73 | -35%
• Months’ supply: 1.3 | -28%

Little Falls area

• New listings: 16 | -20%
• Median sales price: $225,000 | +15%
• Pending sales: 25 | +32%
• Days on market: 10 | -47%
• Inventory: 19 | -34%
• Months’ supply: 0.8 | 27%