Key insights from December 2019 (compared to December 2018)*
- New listings: 2,517 | +3.9%
- Median sales price: $279,000 | +4.2%
- Pending sales: 3,179 | +8.2%
- Days on market: 56 | -1.8%
- Inventory: 7,431 | -19.6%
- Months’ supply: 1.5 | -21.1%
Buyer demand continues to be strong
The year closed with yet another rise in home prices within the Twin Cities region. December closed with mortgage rates about three-quarters of a percent lower than the year before, which helped offset rising home prices and improve affordability. Due to those low interest rates and supply constraints, particularly in homes priced under $250K, buyer demand continues to be strong.
Seller activity may increase in 2020, but sales are still lower than they would be in a more balanced market with a healthy supply of homes at all pricing levels. Prices continued to gain traction in December with the median sales price increasing 8.2% to $279,000. Days on market was down 1.8% to 56 days. Sellers were also encouraged by December’s months’ supply of homes for sale, down 21.1% to 1.5 months.
New listings in the Twin Cities area increased 3.9% to 2,517. Pending sales were up 8.2% to 3,179. Inventory levels fell 19.6% to 7,431 units.
According to CoreLogic’s latest single-family rent index report, rent prices started climbing in 2010 and have stabilized around an annualized rate of 3% since early 2019. With the cost of rent continuing to rise, many are considering a transition from paying a landlord’s mortgage to paying their own and are ready to become first-time homebuyers.
Low mortgage rates, low unemployment and still-decent job and wage growth should keep housing demand strong into 2020. New construction activity rose in 2019 and should continue into 2020, but neither Minnesota nor the Twin Cities are building enough new units to meet demand. It remains to be seen whether these higher home prices will entice existing homeowners to sell, which could help bring the overall market into greater balance.
For a review of what to expect in the year ahead, check out market predictions from Edina Realty President Sharry Schmid.
Find out everything you need to know about buying—get the Go-To Guide for Buying a Home. It's free and full of answers to your home buying questions.
Economic check up
- Minneapolis-St. Paul area unemployment rate: 3.0%
- Average rates for 30-year conforming mortgage: 3.51%**
- The median sales price increased 8.2%
The long and the short of it
- Prices continue to rise; the December average sales price was $328,333.
- Sellers received 97.3% of their original list price in December.
- The average, cumulative number of days on the market declined to 56 days.
Let’s get started
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*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for December 2019.
**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.
- New listings: 44 | +7%
- Avg. sales price: $218,664 | +6%
- Pending sales: 37 | -5%
- Days on market: 85 | +23%
- Inventory: 307 | +4%
- Months’ supply: 3.3 | +10%
- New listings: 158 | -13%
- Avg. sales price: $239,316 | +16%
- Closed sales: 264 | +3%
- Days on market: 62 | -22%
- Inventory: 1,139 | -29%
- Months’ supply: 2.9 | -28%
- New listings: 123 | -25%
- Avg. sales price: $204,435 | +9%
- Closed sales: 243 | +8%
- Days on market: 61 | no change
- Inventory: 1,208 | +2%
- Months’ supply: 3.9 | -3%
Southeast Minnesota area
- New listings: 255 | -4%
- Avg. sales price: $227,665 | +9%
- Closed sales: 451 | +22%
- Days on market: 65 | +20%
- Inventory: 1,140 | -10%
- Months’ supply: 2.2 | -12%
St. Cloud area
- New listings: 74 | -8%
- Avg. sales price: $188,777 | +1%
- Pending sales: 79 | -1%
- Days on market: 64 | +31%
- Inventory: 295 | -14%
- Months’ supply: 1.9 | -17%
Northwestern Wisconsin area
- New listings: 388 | -5%
- Avg. sales price: $178,558 | +1%
- Closed sales: 515 | +15%
- Days on market: 171 |+19%
- Inventory: 5,334 | -7%
- Months’ supply: 9.6 | -24%
West Central and Southwest Minnesota area
- New listings: 133 | +25%
- Avg. sales price: $149,835 | +9%
- Pending sales: 139 | +22%
- Days on market: 83 |-14%
- Inventory: 916 | -10%
- Months’ supply: 4.0 | -11%
- New listings: 86 | +25%
- Avg. sales price: $199,368 | no change
- Pending sales: 90 | +1%
- Days on market: 101 |-8%
- Inventory: 560 | +10%
- Months’ supply: 3.3 | +14%