January 2022 Market Insights

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

• New listings: 2,548 | -18.5%
• Median sales price: $331,000 | +7.8%
• Closed sales: 5,026 | -3.9%
• Pending sales: 3,284 | -12.4%
• Days on market: 33 | -15.4%
• Inventory: 4,438 | -24.1%
• Months’ supply: 0.8 | -27.3%

Real estate market tightens up to close 2021, sales end year at all-time high

The long and the short of it

• 2021 finished up as a record-setting year in terms of both pricing and sheer volume of homes sold.
• Buyers continue to actively consume new listings, pushing inventory back below a one-month supply.
• With no major influx of homes for sale, many of the same dynamics are expected to continue into the foreseeable future.

The real estate market tightened in December 2021, but that didn’t slow its progress toward new records in number of closed sales and median sales price.

5,026 homes sold in December, down 3.9% from December 2020, but the calendar year still saw 2.7% more sales than 2020 in all, with 66,319 homes changing hands. That’s a new all-time high for the 13-county Minneapolis-St. Paul metro area, ahead of even 2020’s frenzied pace.

The active pace of sales wasn’t driven by low pricing, either. With a median price of $331,000 in December, up 7.8% from December 2020, the median price for the year closed at $339,000, up an impressive 11.4%.

The year also saw home sellers outpace even their own expectations, with the typical home closing for 101.9% of its original list price, up from 99.8% last year. The competitive environment also pushed homes to sell after an average of just 28 days on the market, down from 2020’s 43 days.

These records all came amid a December where activity slowed somewhat. Only 2,548 new listings hit the market in the month, an 18.5% drop-off from December 2020. Pending sales also ended the month down 12.4% from December 2020, which could be a sign of a slower start to 2022.

At the end of the year, just 4,438 homes sat for sale, a 0.8-month supply. That inventory is the market’s lowest in recent recorded history, down 24.1% from December 2020.

There’s no shortage of interest in the homes that do hit the market. The average home sold in December after just 33 days on the market, down 15.4% from December 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. Edina Realty agents are reporting a lot of activity on the best homes in the most attractive neighborhoods, and many are already starting preparations for the busy spring market, which typically kicks off with the Super Bowl in midFebruary.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.2% (as of November 2021)
• Average rates for 30-year conforming mortgage 3.56%**
• 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 December 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: 31 | -30%
• Avg. sales price: $273,748 | -6%
• Pending sales: 56 | -13%
• Days on market: 41 | -32%
• Inventory: 96 | -23%
• Months’ supply: 0.9 | -31%

Brainerd area

• New listings: 190 | -10%
• Avg. sales price: $307,426 | +17%
• Closed sales: 423 | -5%
• Days on market: 42 | -28%
• Inventory: 492 | -15%
• Months’ supply: 1.00 | -29%

Lake Superior area

• New listings: 138 | +3%
• Avg. sales price: $270,834 | +11%
• Closed sales: 316 | -13%
• Days on market: 36 | -13%
• Inventory: 467 | -31%
• Months’ supply: 1.4 | -13%

Southeast Minnesota area

• New listings: 286 | +12%
• Avg. sales price: $284,072 | +15%
• Closed sales: 532 | -1%
• Days on market: 37 | -29%
• Inventory: 520 | -3%
• Months’ supply: 1.0 | -9%

St. Cloud area

• New listings: 59 | -16%
• Avg. sales price: $237,721 | +15%
• Pending sales: 95 | -4%
• Days on market: 30 | -30%
• Inventory: 112 | -26%
• Months’ supply: 0.7 | -36%

Mankato area

• New listings: 72 | -13%
• Avg. sales price: $239,289 | +16%
• Pending sales: 93 | -26%
• Days on market: 72 | -26%
• Inventory: 196 | -20%
• Months’ supply: 1.1 | -8%

Northwestern Wisconsin area

• New listings: 204 | -12%
• Avg. sales price: $276,913 | +21%
• Closed sales: 484 | +1%
• Days on market: 87 | -12%
• Inventory: 1,018 | -22%
• Months’ supply: 2.0 | -17%

West Central Minnesota area

• New listings: 153 | +9%
• Avg. sales price: $186,548 | +15%
• Pending sales: 201 | -8%
• Days on market: 45 | -39%
• Inventory: 400 | -28%
• Months’ supply: 1.5 | -29%

Bemidji area

• New listings: 31 | +24%
• Median sales price: $195,000 | -11%
• Pending sales: 41 | +17%
• Inventory: 72 | +7%
• Months’ supply: 1.2 | 9%

Leech Lake and surrounding area

• New listings: 19 | +46%
• Median sales price: $275,000 | +21%
• Pending sales: 28 | -38%
• Days on market: 34 | -15%
• Inventory: 61 | +3%
• Months’ supply: 1.1 | +22%

Little Falls area

• New listings: 14 | +8%
• Median sales price: $175,000 | -5%
• Pending sales: 11 | -39%
• Days on market: 30 | +76%
• Inventory: 20 | +43%
• Months’ supply: 0.8 | +60%

Southwest Minnesota area

• New listings: 58 | +2%
• Median sales price: $140,000 | +2%
• Pending sales: 79 | -19%
• Days on market: 52 | -16%
• Months’ supply: 1.5 | -42%

Headwaters area

• New listings: 43 | +30%
• Median sales price: $208,500 | +6%
• Pending sales: 80 | -20%
• Days on market: 59 | -12%
• Months’ supply: 1.4 | -7%