Key insights from December 2018 (compared to Dec. 2017)*
- New listings: 2,391 | +3%
- Median sales price: $258,000| +4%
- Pending sales: 2,918 | -3%
- Days on market: 57 | -7%
- Inventory: 8,128 | +5%
- Months’ supply: 1.7 | +13%
Moderation in all things
After years of extremely low inventory, intense buyer competition and quickly-rising home sale prices, 2019 is starting out the year with some moderation.
The inventory of homes for sale rose about 5 percent, giving buyers more options to choose from—welcome news after inventory reached a 15-year low. Less competition for buyers means a less frenetic homebuying pace and possibly fewer bidding wars.
Home prices saw slightly less upward pressure at the end of last year. For the whole year, the median sales price rose nearly 8 percent over the prior year, but in December, it was up 4 percent, a more moderate and sustainable amount.
Moderating sales price growth is essential to maintaining home affordability and keeping buyer demand strong. If prices rise too high too fast, buyers may drop out until more affordable options become available.
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Additional good news for buyers is mortgage rates appear to be holding steady after reaching a high of about 5 percent 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% — The best in the nation
- Average rates for 30-year conforming mortgage: 4.625%
- New construction was slower than expected for the year, with single-family residential permits ending the year about flat with 2017.
The long and the short of it
- Home sale prices are still rising, but less sharply, which should help keep homes more affordable.
- After peaking at 5 percent in 2018, mortgage rates settled around 4.6 percent.
- Homes are still selling more quickly than years past, which is great for sellers.
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 starts now! 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 December 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: 41 | +24%
- Avg. sales price: $206,000 | +10%
- Pending sales: 39 | -9%
- Days on market: 69 | -3%
- Inventory: 296 | -18%
- Months’ supply: 3 | -17%
- New listings: 178 | -1%
- Avg. sales price: $206,000 | -2%
- Closed sales: 255 | -12%
- Days on market: 79 | -28%
- Inventory: 1,339 | -19%
- Months’ supply: 3.4 | -19%
- New listings: 160 | +52%
- Avg. sales price: $190,000 | +1%
- Closed sales: 217 | +7%
- Days on market: 61 | -25%
- Inventory: 1,197 | +28%
- Months’ supply: 4.2 | +11%
Southeast Minnesota area
- New listings: 265 | +10%
- Avg. sales price: $209,000 | +3%
- Closed sales: 365 | -20%
- Days on market: 55 | -17%
- Inventory: 1,209 | +7%
- Months’ supply: 2.3 | +10%
St. Cloud area
- New listings: 80 | +27%
- Avg. sales price: $187,000 | +13%
- Pending sales: 80 | -9%
- Days on market: 49 | -38%
- Inventory: 344 | -14%
- Months’ supply: 2.3 | -12%