March 2019 Market Insights

Key insights from February 2019 (compared to Feb. 2018)*

• New listings: 4,355 | -14.3%
• Median sales price: $265,500| +6.2% (a record high for February)
• Pending sales: 3,402 | -7.4%
• Days on market: 69 | flat
• Inventory: 7,936 | -5.7%
• Months’ supply: 1.6 | -5.9%

Extreme weather slows the February market

February’s cold temperatures and record snowfall hit the housing market just as hard as potholes hit the roads. The local market took a pause as many postponed or modified plans for a move. Fewer sellers listed their homes and buyer activity followed with a 7.4 percent decrease in pending sales compared to last February.

The good news is this slowdown is likely temporary. In fact, the latest numbers for residential real estate in the Twin Cities already show some strength. Home prices are still on the rise with a median sales price of $265,500 – a record for February, and market time from listing to sold remains flat at 69 days.

What is the outlook for the real estate environment? Due to February’s unusual weather, March activity will be a better indicator of where the market is heading. Overall the outlook remains positive with a strong labor market and favorable interest rates. Sellers still benefit from strong pricing, favorable negotiating leverage and quick market time, however, buyers are encouraged. Despite February’s slower activity, buyers have seen an increase in inventory for four of the last five months. Buyer competition remains most evident in the entry-level prices. Properties in the $350,001-$500,000 range had the strongest February sales with a 10.2 percent increase over last year.

Market activity will likely increase in the coming weeks with the arrival of warmer temperatures. Keep an eye out for the April Market Insights to see where trends are developing.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.6%
• Average rates for 30-year conforming mortgage: 4.28%**
• New construction continues to be strong with sales up 5.3%

The long and the short of it

• Home sale prices are still rising, but steady mortgage rates should help with affordability.
• Lower price points are in high demand and still favor sellers.
• Higher price points are becoming more balanced.
• New construction remains strong.

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 to for a free home analysis from a market expert in your area.

Spring into the season! 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 February 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.

Alexandria Area

• New listings: 92 | -2%
• Avg. sales price: $226,766 | +27%
• Pending sales: 58 | -6%
• Days on market: 58 | -6%
• Inventory: 294 | -19%
• Months’ supply: 3.0 | -17%

Brainerd area

• New listings: 369 | -22%
• Avg. sales price: $204,072 | -5%
• Closed sales: 208 | +18%
• Days on market: 84 | -18%
• Inventory: 1,290 | -25%
• Months’ supply: 3.3 | -23%

Duluth area

• New listings: 268 | +9%
• Avg. sales price: $176,766 | +2%
• Closed sales: 162 | +36%
• Days on market: 76 | -11%
• Inventory: 1,106 | +29%
• Months’ supply: 3.7 | +9%

Southeast Minnesota area

• New listings: 387 | -14%
• Avg. sales price: $193,298 | -6%
• Closed sales: 271 | -3%
• Days on market: 66 | -15%
• Inventory: 1,142 | +9%
• Months’ supply: 2.2 | +16%

St. Cloud area

• New listings: 146 | -21%
• Avg. sales price: $170,849 | +1%
• Pending sales: 118 | -9%
• Days on market: 89 | +9%
• Inventory: 346 | -20%
• Months’ supply: 2.3 | -18%

Northwestern Wisconsin area

• New listings: 516 | -35%
• Avg. sales price: $161,340 | +8%
• Closed sales: 380 | +16%
• Days on market: 207 |-2%
• Inventory: 5,529 | -8%
• Months’ supply: 12.4 | +23%