July 2022 Market Insights

Key insights from June 2022 (compared to June 2021)*

• New listings: 7,901 | -6.7%
• Median sales price: $380,000 | +8.6%
• Closed sales: 6,422 | -15.4%
• Pending sales: 5,544 | -18.4%
• Days on market: 21 | +5.0%
• Inventory: 8,020 | +9.8%
• Months’ supply: 1.6 | +23.1%

New listings pick up as sales prices once again set record

The long and the short of it

• Median pricing set a new record of $380,000.
• The inventory of homes for sale jumped 9.8% compared to last year, only the second time in the past 12 months that listings have risen.
• There is still quite some distance to cover before the market approaches balance between supply and demand.

Inventory and median sales prices across the 13-county Twin Cities real estate market each continued their upward trend in June, bringing good news for buyers and sellers alike.

The median sales price this June was $380,000, a new record for our market and the sixth consecutive month in which homes have cost more than the preceding year. Sellers received 103.3% of their initial list price in June, and so far this year are getting 104.1% of their original pricing.

While supply and demand is frequently cited as a major influence on pricing, inventory actually rose alongside pricing in June. A total of 8,020 homes were listed for sale at the end of the month, a massive 9.8% jump from a year ago. The past two months are the only ones so far in 2022 in which listing inventory has been up year over year.

The total supply of homes available for sale now sits at 1.6 months, the highest it’s been since September 2021. Despite that upturn, the market is still imbalanced in favor of sellers, as a six-month supply is typically considered the sign of a truly “balanced” power dynamic.

Sellers listed a total of 7,901 new homes in June, down 6.7% from the same month in 2021. Total listings year-to-date are down 3.7%, meaning that buyers will still have to compete for their ideal homes.

That doesn’t seem to be a problem. Motivated buyers showed this past month that they’re still willing to move quickly and competitively for homes that meet their criteria. In June, the typical home sold in just 21 days, down two days from May and up just a day from the busy June 2021.

Overall activity did decrease this month, though, due in some part to economic conditions such as inflation and rising mortgage rates. A total of 6,422 sales closed in June, down 15.4% from last June’s total. Another 5,544 sales were pending at the end of the month, down about 18.4%.

While mortgage rates are higher than they were last year, they’re still healthy at around 5-6%, and buyers are expected to be just as active this summer once they adjust to the “new normal.” Buyers looking to reduce the impact from rising rates may seek alternative options, such as buying mortgage points.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 1.6% (as of May 2022)
• Average rates for 30-year conforming mortgage 5.51%**
• Interest rates hadn’t been at 5% or higher since 2018, according to Freddie Mac.

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 June 2022.

**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: 131 | -24%
• Avg. sales price: $303,432 | -1%
• Pending sales: 105 | -23%
• Days on market: 21 | -34%
• Inventory: 116 | -34%
• Months’ supply: 1.2 | -25%

Brainerd area

• New listings: 587 | -22%
• Avg. sales price: $312,285 | +0%
• Closed sales: 307 | -48%
• Days on market: 35 | +30%
• Inventory: 585 | -24%
• Months’ supply: 1.3 | -13%

Lake Superior area

• New listings: 381 | -16%
• Avg. sales price: $268,775 | +7%
• Pending sales: 227 | -18%
• Days on market: 26 | -60%
• Inventory: 485| -7%
• Months’ supply: 1.5 | +7%

Southeast Minnesota area

• New listings: 609 | -18%
• Avg. sales price: $314,952 | +9%
• Closed sales: 445 | -41%
• Days on market: 31 | +29%
• Inventory: 441 | -22%
• Months’ supply: 0.9 | -10%

St. Cloud area

• New listings: 201 | -26%
• Avg. sales price: $254,135 | -1%
• Pending sales: 174 | -20%
• Days on market: 21 | +24%
• Inventory: 136 | -29%
• Months’ supply: 0.9 | -18%

Mankato area

• New listings: 239 | -4%
• Avg. sales price: $285,449 | +7%
• Pending sales: 208 | +3%
• Days on market: 81 | +7%
• Inventory: 173 | -22%
• Months’ supply: 1.0 | -17%

Northwestern Wisconsin area

• New listings: 769 | -3%
• Avg. sales price: $298,201 | +11%
• Closed sales: 562 | -12%
• Days on market: 62 | -25%
• Inventory: 1,670 | -8%
• Months’ supply: 3.2 | -3%

West Central Minnesota area

• New listings: 252 | -39%
• Avg. sales price: $207,155 | +3%
• Pending sales: 210 | -41%
• Days on market: 52 | +11%
• Inventory: 278 | -47%
• Months’ supply: 1.5 | -21%

Bemidji area

• New listings: 106 | +9%
• Median sales price: $270,900 | +15%
• Pending sales: 73 | -18%
• Inventory: 120 | -6%
• Months’ supply: 2.1 | +0%

Leech Lake and surrounding area

• New listings: 125 | +39%
• Median sales price: $307,000 | +2%
• Pending sales: 70 | -18%
• Days on market: 5 | n/a
• Inventory: 150 | +97%
• Months’ supply: 2.9 | +142%

Little Falls area

• New listings: 28 | +0%
• Median sales price: $245,000 | +19%
• Pending sales: 26 | +0%
• Days on market: 8 | +100%
• Inventory: 27 | +13%
• Months’ supply: 1.2 | +33%

Southwest Minnesota area

• New listings: 129 | -24%
• Median sales price: $179,000 | +39%
• Pending sales: 108 | -18%
• Days on market: 44 | -28%
• Months’ supply: 2.3 | +10%

Headwaters area

• New listings: 170 | +1%
• Median sales price: $269,400 | +8%
• Pending sales: 116 | -13%
• Days on market: 38 | +6%
• Months’ supply: 2.5 | +32%