Key insights from May 2019 (compared to May 2018)*
- New listings: 9,402 | +2.4%
- Median sales price: $285,000| +5.2%
- Pending sales: 6,641 | +0.1%
- Days on market: 45 | -4.3%
- Inventory: 11,327 | +0.5%
- Months’ supply: 2.3 | 0.0%
Low mortgage rates are a strong motivator for buyers during this active market
The harsh and prolonged winter weather is now a distant memory as May showed growth in seller activity, pending and closed buyer activity, quicker market times and rising prices. While it is true that home prices continue to rise overall, buyers are beginning to find flexibility in some price points and areas, particularly in upper brackets.
Prices reached a new all-time high of $285,000. New listings rose 2.4 percent while closed sales were up 3.0 percent. After two months of increases, market times sped up by 4.3 percent compared to May 2018. The ratio of sold to list price fell for a fourth consecutive month, but by the smallest amount since February. In conjunction with other indicators, the market is improving for buyers, even though sellers still enjoy strong pricing power, favorable negotiating leverage and quick market times. For the last nine months, buyers have seen more active listings for sale than the year prior.
On a national level, some western markets are cooling slightly, while some northeast markets are seeing increased activity after a significant lull in residential real estate sales. Housing markets are hyperlocal and can vary greatly across areas and segments. In the Twin Cities area, we continue to see strong demand, weak supply and price growth, causing affordability challenges for some.
Mortgage rates remain very attractive at around 3.82 percent on a 30-year fixed loan – far lower than anyone predicted by this time.
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Economic check up
- Minneapolis-St. Paul area unemployment rate: 3.0%
- Average rates for 30-year conforming mortgage: 3.82%**
- New construction sales surged 10.5%
The long and the short of it
- Prices reached a new all-time median high of $285,000.
- May saw an increase in both new listings and closed sales.
- Lower price points remain in high demand and still favor sellers.
- New construction continues to surge, showing a 10.5 percent increase.
- Local dynamics play a major part in residential real estate.
Let’s get started
Your home is unique and so is your story. You deserve more than a computer formulated look at your home’s value. Connect with a real person with real experience and local expertise to see what your home could sell for. Reach out for a free home analysis from a market expert in your area.
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*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for May 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: 208 | -11%
- Avg. sales price: $233,775 | -1%
- Pending sales: 136 | -13%
- Days on market: 69 | +8%
- Inventory: 446 | -13%
- Months’ supply: 4.8 | -6%
- New listings: 877 | -9%
- Avg. sales price: $235,200 | -5%
- Closed sales: 480 | 0%
- Days on market: 68 | -20%
- Inventory: 1,834 | -17%
- Months’ supply: 4.7 | -18%
- New listings: 690 | -10%
- Avg. sales price: $196,992 | -2%
- Closed sales: 377 | +41%
- Days on market: 55 | -7%
- Inventory: 1,529 | +9%
- Months’ supply: 5.1 | -7%
Southeast Minnesota area
- New listings: 816 | -3%
- Avg. sales price: $231,742 | +2%
- Closed sales: 634 | +1%
- Days on market: 60 | +3%
- Inventory: 1,389 | +6%
- Months’ supply: 2.8 | +12%
St. Cloud area
- New listings: 299 | -4%
- Avg. sales price: $209,945 | +8%
- Pending sales: 228 | +10%
- Days on market: 49 | -6%
- Inventory: 418 | -14%
- Months’ supply: 2.8 | -13%
Northwestern Wisconsin area
- New listings: 1,469 | +2%
- Avg. sales price: $187,733 | +7%
- Closed sales: 823 | +8%
- Days on market: 191 |+2%
- Inventory: 6,660 | -6%
- Months’ supply: 14.1 | +17%
West Central and Southwest Minnesota area
- New listings: 498 | +20%
- Avg. sales price: $148,852 | -6%
- Pending sales: 337 | +15%
- Days on market: 256 |+139%
- Inventory: 1,119 | +8%
- Months’ supply: 5.1 | +9%