June 2022 Market Insights

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

• New listings: 7,930 | +3.2%
• Median sales price: $375,000 | +9.0%
• Closed sales: 5,446 | -3.8%
• Pending sales: 6,076 | -11.8%
• Days on market: 23 | -4.2%
• Inventory: 6,797 | +5.3%
• Months’ supply: 1.3 | +18.2%

Market sets new median sales record and listings pick up

The long and the short of it

• Median pricing set a new record, with the average home selling for $375,000.
• The inventory of homes for sale jumped 5.3% compared to last year, our first year-over-year increase in inventory in more than a year.
• There is still quite some distance to cover before the market approaches balance between supply and demand.

The 13-county Twin Cities real estate market saw its biggest uptick in inventory in more than a year this May, but that wasn’t enough to slow the red-hot momentum of sales prices.

May saw yet another new record median sales price for homes in the metro area, with the average home fetching $375,000 in this competitive market. May sellers received 104.1% of their initial list price.

Pricing has been pushed ever upward during this cycle. Even as recently as early 2020, the market hadn’t seen a $300,000 median price before. The median price has now risen every month of 2022.

One of the main factors pushing prices higher over the past couple of years has been low inventory of homes for sale coupled with high demand. But in May, the inventory of homes for sale rose to 6,797, a 5.3% jump from a year ago. That’s the first time since March 2020, effectively the beginning of the COVID-19 pandemic, that our market has seen a year-over-year increase in inventory for sale.

7,930 homes were listed for sale over the course of the month, a 3.2% increase over May 2021 and the first gain in new listings since November.

While that’s good news for current buyers, the market is still far from balanced. There’s a 1.3-month supply of homes for sale, whereas a balanced market is typically closer to a six-month supply.

Sales continue to move quickly. The typical home spent just 23 days on the market in May, down a day from May 2021. Homes so far this year are selling in just 32 days on average, down three days from the first five months of 2021, but more than three weeks faster than the same period two years ago.

5,446 sales closed in May, a 3.8% decrease from May 2021. Another 6,076 sales are pending as of the end of May, down 11.8% from the same month a year ago.

Looking forward, rising interest rates and high prices could continue to motivate both buyers and sellers to act now, making for a potentially busy summer market. 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: 1.5% (as of April 2022)
• Average rates for 30-year conforming mortgage 5.78%**
• 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 May 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: 143 | -15%
• Avg. sales price: $280,245 | -3%
• Pending sales: 127 | -11%
• Days on market: 20 | -26%
• Inventory: 134 | -8%
• Months’ supply: 1.4 | +8%

Brainerd area

• New listings: 856 | +17%
• Avg. sales price: $336,258 | +7%
• Closed sales: 465 | -4%
• Days on market: 31 | -11%
• Inventory: 835 | +27%
• Months’ supply: 1.7 | +31%

Lake Superior area

• New listings: 497 | -9%
• Avg. sales price: $288,446 | +11%
• Closed sales: 278 | -19%
• Days on market: 26 | -30%
• Inventory: 587| -18%
• Months’ supply: 1.8 | -5%

Southeast Minnesota area

• New listings: 616 | -1%
• Avg. sales price: $326,041 | +12%
• Closed sales: 519 | -16%
• Days on market: 25 | -17%
• Inventory: 533 | +18%
• Months’ supply: 1.1 | +38%

St. Cloud area

• New listings: 229 | +2%
• Avg. sales price: $274,493 | +6%
• Pending sales: 172 | -16%
• Days on market: 16 | -20%
• Inventory: 184 | +24%
• Months’ supply: 1.2 | +33%

Mankato area

• New listings: 266 | +11%
• Avg. sales price: $290,303 | +18%
• Pending sales: 187 | -6%
• Days on market: 65 | -8%
• Inventory: 235 | +19%
• Months’ supply: 1.3 | +30%

Northwestern Wisconsin area

• New listings: 724 | +7%
• Avg. sales price: $315,341 | +24%
• Closed sales: 469 | -8%
• Days on market: 67 | -32%
• Inventory: 1,492 | -10%
• Months’ supply: 2.9 | -3%

West Central Minnesota area

• New listings: 299 | -14%
• Avg. sales price: $214,064 | +11%
• Pending sales: 206 | -35%
• Days on market: 37 | -87%
• Inventory: 358 | -27%
• Months’ supply: 1.9 | +12%

Bemidji area

• New listings: 78 | -45%
• Median sales price: $237,575 | +2%
• Pending sales: 64 | -23%
• Inventory: 98 | -18%
• Months’ supply: 1.7 | -15%

Leech Lake and surrounding area

• New listings: 101 | -1%
• Median sales price: $301,000 | +24%
• Pending sales: 62 | -16%
• Days on market: 5 | n/a
• Inventory: 104 | +30%
• Months’ supply: 2.0 | +67%

Little Falls area

• New listings: 32 | -16%
• Median sales price: $270,000 | +69%
• Pending sales: 28 | +12%
• Days on market: 6 | -33%
• Inventory: 23 | -15%
• Months’ supply: 1.0 | n/a

Southwest Minnesota area

• New listings: 143 | +9%
• Median sales price: $161,650 | +11%
• Pending sales: 104 | -5%
• Days on market: 47 | -38%
• Months’ supply: 2.0 | +5%

Headwaters area

• New listings: 145 | -34%
• Median sales price: $243,500 | +6%
• Pending sales: 117 | -23%
• Days on market: 42 | +5%
• Months’ supply: 1.9 | +6%