June 2020 Market Insights

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

• New listings: 7,199 | -24.1%
• Median sales price: $294,900 | +3.5%
• Pending sales: 5,828 | -13.9%
• Days on market: 41 | -8.9%
• Inventory: 9,744 | -20.3%
• Months’ supply: 2.0 | -20%

Mortgage rates continue to hover near all-time lows, creating strong buyer interest. Showing activity was up 4% nationally versus a year ago in the final week of May and reached a new high for the year. Sellers, however, continued to be hesitant and inventory levels fell 20.3% to 9,744 units.

As states and localities continue to moderate COVID-19 policies, real estate activity is expected to continue to improve in the coming weeks. Buyers are eager to take advantage of mortgage rates still under 4%, and sellers will be encouraged by the increase in home prices and shortened market times.

Although overall housing market activity in the Twin Cities was down from May 2019, it did increase from this April. It comes as no surprise that closed sales and pending sales in May dropped significantly from last year, reflecting the effect of COVID-19 on March and April activity. Pending sales were down 13.9% to 5,828 and closed sales fell 22.4% to 4,728.

New listings in the Twin Cities region decreased 24.1% to 7,199 compared to last year. The good news for sellers is that buyer interest remains strong, continuing the upward trend of home prices in several price ranges and shorter market times. The median sales price increased 3.5% to $294,900. Days on market was down 8.9% to 41 days, and months supply of homes for sale was down 20%.

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: 9.2% (as of April 2020)
• Average rates for 30-year conforming mortgage: 3.13%**
• The average sales price increased slightly to $334,037.
• 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 May.
• The average, cumulative number of days on the market decreased to 41 days.
• Although overall pending sales fell 13.9%, pending sales in the $350-500K price range were down only 2.5%.

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 May 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: 163 | -32%
• Avg. sales price: $231,199 | +3%
• Pending sales: 145 | -11%
• Days on market: 63 | -17%
• Inventory: 339 | -25%
• Months’ supply: 3.5 | -22%

Brainerd area

• New listings: 740 | -18%
• Avg. sales price: $256,285 | +10%
• Closed sales: 406 | -16%
• Days on market: 60 | -14%
• Inventory: 1,509 | -25%
• Months’ supply: 3.8 | -25%

Duluth area

• New listings: 540 | -24%
• Avg. sales price: $206,095 | +4%
• Closed sales: 276 | -27%
• Days on market: 57 | +4%
• Inventory: 1,341 | -4%
• Months’ supply: 4.6 | +2%

Southeast Minnesota area

• New listings: 694 | -16%
• Avg. sales price: $243,590 | +5%
• Closed sales: 489 | -24%
• Days on market: 50 | -17%
• Inventory: 1,149 | -21%
• Months’ supply: 2.2 | -24%

St. Cloud area

• New listings: 202 | -33%
• Avg. sales price: $218,179 | +4%
• Pending sales: 180 | -19%
• Days on market: 42 | -14%
• Inventory: 328 | -25%
• Months’ supply: 2.2 | -24%

Northwestern Wisconsin area

• New listings: 1090 | -26%
• Avg. sales price: $183,338 | -2%
• Closed sales: 633 | -23%
• Days on market: 179 |-6%
• Inventory: 5,769 | -13%
• Months’ supply: 11.1 | -21%

West Central and Southwest Minnesota area

• New listings: 347 | -32%
• Avg. sales price: $175,405 | +17%
• Pending sales: 314 | -9%
• Days on market: 93 |-3%
• Inventory: 908 | -22%
• Months’ supply: 3.8 | -27%

Mankato area

• New listings: 259 | -22%
• Avg. sales price: $229,993 | +7%
• Pending sales: 235 | -8%
• Days on market: 122 |+3%
• Inventory: 479 | -17%
• Months’ supply: 2.7 | -21%

Bemidji area

• New listings: 83 | -26%
• Median sales price: $202,450 | +7%
• Closed sales: 46 | -34%
• Inventory: 146 | -24%
• Months’ supply: 3.1 | -24%

Leech Lake and surrounding area

• New listings: 125 | -20%
• Median sales price: $267,450 | +22%
• Pending sales: 75 | +3%
• Days on market: 44 |+29%
• Inventory: 304 | -15%
• Months’ supply: 6.2 | -9%

Little Falls area

• New listings: 48 | no change
• Median sales price: $165,000 | -19%
• Pending sales: 40 | +3%
• Days on market: 18 |-31%
• Inventory: 60 | +9%
• Months’ supply: 2.7 | +17%