Key insights from January 2019 (compared to Jan. 2018)*
- New listings: 4,359 | +7.8%
- Median sales price: $258,900| +6.1% (a record high for January)
- Pending sales: 3,248 | +3.4%
- Days on market: 65 | -5.8%
- Inventory: 7,828 | +1.1%
- Months’ supply: 1.6 | +6.7%
A tale of two markets
The Twin Cities residential real estate market is off to a strong start. More sellers put their homes on the market and buyer activity was up 3.4 percent over last January. So, does that mean the market is changing from one that favors sellers to one that gives the edge to buyers? Not necessarily. While it’s true that inventory levels are up (good news for buyers), price point matters, and buyers at lower price points (think under $300K) are still experiencing low inventory and fierce competition. Conversely, homes at higher price points are seeing more moderation and balance between sellers and buyers.
The median sales price topped out at $258,900—a record for January—while the time a home was on the market before it sold was down to 65 days.
Sales price growth continues to make home affordability a challenge. The Fed responded to the affordability conundrum by maintaining interest rates in January and is described as planning a more patient approach to further rate changes in the coming months.
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The market will likely see greater increases in home inventory in the coming weeks and months. Sub-zero temps and record snowfall have caused some sellers to delay listing their home for sale until the weather improves.
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.8%
- Average rates for 30-year conforming mortgage: 4.575%
- New construction got off to a strong start with sales up 12.8%
The long and the short of it
- Home sale prices are still rising, but steady mortgage rates should help with affordability.
- Lower price points are in high demand and still favor sellers.
- Homes are selling more quickly than years past, which is great for sellers.
- Sellers are getting 97% of their list price on average.
- New construction is off to a strong start.
Let’s get started
Does a software algorithm know the true value of your home? To get a real person’s perspective of what your home could sell for, you need a home value estimate from a professional Realtor. Reach out to be connected with a market expert in your area.
It doesn’t feel like it outside, but spring market is already underway! 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 January 2019.
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: 61 | -13%
- Avg. sales price: $204,000 | -2%
- Pending sales: 46 | -8%
- Days on market: 86 | -25%
- Inventory: 280 | -20%
- Months’ supply: 2.8 | -20%
- New listings: 326 | +9%
- Avg. sales price: $224,000 | +18%
- Closed sales: 186 | -8%
- Days on market: 94 | +2%
- Inventory: 1,241 | -22%
- Months’ supply: 3.1 | -22%
- New listings: 249 | +5%
- Avg. sales price: $186,000 | +7%
- Closed sales: 191 | +59%
- Days on market: 63 | -5%
- Inventory: 1,109 | +29%
- Months’ supply: 3.7 | +6%
Southeast Minnesota area
- New listings: 370 | +6%
- Avg. sales price: $218,000 | +10%
- Closed sales: 280 | -6%
- Days on market: 72 | +18%
- Inventory: 1,133 | +7%
- Months’ supply: 2.2 | +10%
St. Cloud area
- New listings: 145 | +7%
- Avg. sales price: $205,000 | +28%
- Pending sales: 77 | -27%
- Days on market: 94 | +22%
- Inventory: 340 | -14%
- Months’ supply: 2.3 | -12%
Northwestern Wisconsin area
- New listings: 615 | +9%
- Avg. sales price: $177,000 | +12%
- Closed sales: 357 | +7%
- Days on market: 187 |-15%
- Inventory: 5,581 | -4%
- Months’ supply: 12.4 | +27%