July 2020 Market Insights

Key insights from June 2020 (compared to June 2019)*

• New listings: 7,306 | -14.6%
• Median sales price: $305,000 | +5.2%
• Pending sales: 6,819 | +6.2%
• Days on market: 42 | +2.4%
• Inventory: 9,154 | -29.8%
• Months’ supply: 1.8 | -33.3%

Buyer interest continues to drive the housing market even as inventory remains a challenge

Not only in the Twin Cities, but across the nation, residential real estate showing activity was on the rise in June. Not only did showings increase significantly over recent months, but nationwide showings rose even higher than June of last year.

In the Twin Cities region, we still face inventory challenges as new listings decreased 14.6% to 7,306 and inventory levels fell 29.8%. Pending sales were up 6.2% to 6,819. Interest rates continue to be at record lows and buyers are ready to make a move, resulting in multiple offers across popular price points.

Significant buyer activity and low inventory also means prices continued to gain traction as the median sales price increased 5.2% to $305,000. Days on market (from listing to accepted offer) was up 2.4% to 42 days. Sellers were encouraged as the months supply of homes for sale was down 33.3% to 1.8 months.

While buyer activity continues to be robust, seller activity continues to be a bit softer, with fewer homes being listed for sale than a year ago. Many housing experts believe sellers remain reluctant to list their homes due to continued concerns over COVID-19. Seller confidence will continue to play a vital role in the summer and fall housing market. See how Edina Realty is working to keep you safe during COVID-19.

The overall Minnesota housing market pulled up from the steep declines seen last month. Pending sales throughout the state rose 7.8% over last year even as new listings were down 12.1%. In June, there were 28.1% fewer properties available for home buyers to consider compared to a year ago.

As you begin your home search through virtual tours and safe showings, 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: 10.4% (as of May 2020)
• Average rates for 30-year conforming mortgage 2.98%**
• The average sales price increased slightly to $348,153.
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 99.6% of their original list price in June.
• Pending sales were up over recent months and higher than last year.
• The effect of COVID-19 on seller confidence continues to impact the housing market.

Ready to help

We are here to help you safely and confidently navigate your housing needs, now and always. We have options to assist you through innovative technology and by using diligent safety precautions. 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.

Download the Ultimate Guide to Selling Your Home for tips and ideas from local professionals.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for June 2020.

**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.

Alexandria Area

• New listings: 157 | -21%
• Avg. sales price: $256,995 | +5%
• Pending sales: 157 | -1%
• Days on market: 57 | +10%
• Inventory: 319 | -31%
• Months’ supply: 3.3 | -27%

Brainerd area

• New listings: 775 | -19%
• Avg. sales price: $248,764 | +7%
• Closed sales: 668 | +9%
• Days on market: 71 | +11%
• Inventory: 1,497 | -37%
• Months’ supply: 3.3 | -38%

Duluth area

• New listings: 618 | -10%
• Avg. sales price: $234,823 | +7%
• Closed sales: 435 | +9%
• Days on market: 56 | +24%
• Inventory: 1,383 | -12%
• Months’ supply: 4.6 | -6%

Southeast Minnesota area

• New listings: 686 | -7%
• Avg. sales price: $251,750 | +4%
• Closed sales: 669 | -12%
• Days on market: 52 | +2%
• Inventory: 1,009 | -32%
• Months’ supply: 1.9 | -37%

St. Cloud area

• New listings: 212 | -16%
• Avg. sales price: $222,260 | -1%
• Pending sales: 199 | -12%
• Days on market: 42 | -9%
• Inventory: 314 | -27%
• Months’ supply: 2.2 | -24%

Northwestern Wisconsin area

• New listings: 1176 | -16%
• Avg. sales price: $192,695 | +1%
• Closed sales: 917 | +10%
• Days on market: 163 |+3%
• Inventory: 5,874 | -14%
• Months’ supply: 10.6 | -13%

West Central and Southwest Minnesota area

• New listings: 447 | +12%
• Avg. sales price: $156,701 | minimal
• Pending sales: 356 | +17%
• Days on market: 87 |+9%
• Inventory: 944 | -21%
• Months’ supply: 3.8 | -28%

Mankato area

• New listings: 247 | -8%
• Avg. sales price: $209,058 | -5%
• Pending sales: 219 | -4%
• Days on market: 113 |+9%
• Inventory: 471 | -20%
• Months’ supply: 2.7 | -21%

Bemidji area

• New listings: 44 | -55%
• Median sales price: $220,000 | +25%
• Closed sales: 80 | -1%
• Inventory: 144 | -30%
• Months’ supply: 2.6 | -40%

Leech Lake and surrounding area

• New listings: 91 | -36%
• Median sales price: $223,250 | +18%
• Pending sales: 125 | +62%
• Days on market: 55 |+175%
• Inventory: 268 | -33%
• Months’ supply: 5.0 | -35%

Little Falls area

• New listings: 36 | -27%
• Median sales price: $172,000 | -20%
• Pending sales: 41 | +21%
• Days on market: 17 |-19%
• Inventory: 52 | -25%
• Months’ supply: 2.3 | -18%,