Key insights from February 2020 (compared to February 2019)*
- New listings: 5,293 | +19.9%
- Median sales price: $282,000 | +6.3%
- Pending sales: 4,267 | +23.9%
- Days on market: 67 | -2.9%
- Inventory: 7,879 | -12.4%
- Months’ supply: 1.6 | -11.1%
COVID-19 impacts the strong start to the spring housing market
The COVID-19/novel coronavirus presents challenges and concerns during this unprecedented time. The actual and expected impacts of COVID-19 continue to grow and we continue to adjust practices in order to protect our clients while also serving their continued housing needs. The economic impact reached the stock market during the last week of February. As the stock market declined, so did mortgage rates, offering a bad news-good news situation. While short term declines in the stock market can sting, borrowers who lock in today’s low rates will benefit significantly in the long term.
We continue to closely monitor current developments and implement the recommendations of healthcare authorities. Prior to this unexpected challenge, February’s warm weather created a buzz of activity in the Twin Cities housing market and throughout the region. New listings in the Twin Cities area increased nearly 20% to 5,293. Pending sales were also up nearly 24% to 4,267.
Prices continued to gain traction with a median price increase of 6.3% to $282,000. Sellers were also encouraged by how quickly houses were moving with the months supply of homes for sale down more than 11% to 1.6 months and days on the market down 2.9% to 67 days. Inventory levels fell 12.4% to 7,879 units.
The recently released January ShowingTime Showing Index® saw a 20.2% year-over-year increase in showing traffic nationwide. All regions of the country were up double digits from the year before, including the Midwest which is up 15.7%. As showing activity is a leading indicator for future home sales, the 2020 housing market is off to a strong start, though it will be important to watch the spread of COVID-19 and its potential impacts on the overall economy in the coming months.
Use this extra time to prepare for your future home search. 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: 3.3% (as of January 2020 – this is rapidly changing)
- Average rates for 30-year conforming mortgage: 3.65%**
- The median sales price increased 6.3%
The long and the short of it
- Prices continue to rise year-over-year; the February average sales price was $324,520.
- Sellers received 98% of their original list price in February.
- The average, cumulative number of days on the market decreased to 67 days.
We are here to help
We understand that you may have housing needs that can’t be delayed despite the current pandemic. We are here to help you safely and confidently navigate those needs. We have options to assist you through technology and through 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 February 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: 68 | -26%
- Avg. sales price: $183,980 | -18%
- Pending sales: 59 | -8%
- Days on market: 68 | -28%
- Inventory: 261 | -13%
- Months’ supply: 2.8 | -7%
Brainerd area
- New listings: 348 | -7%
- Avg. sales price: $214,296 | +6%
- Closed sales: 165 | -21%
- Days on market: 95 | +12%
- Inventory: 1,151 | -24%
- Months’ supply: 2.9 | -24%
Duluth area
- New listings: 270 | -2%
- Avg. sales price: $181,748 | +3%
- strong>Closed sales: 164 | no change
- Days on market: 81 | +8%
- Inventory: 1,055 | no change
- Months’ supply: 3.4 | no change
Southeast Minnesota area
- New listings: 452 | +15%
- Avg. sales price: $236,089 | +21%
- Closed sales: 323 | +15%
- Days on market: 79 | +16%
- Inventory: 1,017 | -15%
- Months’ supply: 1.9 | -17%
St. Cloud area
- New listings: 156 | +5%
- Avg. sales price: $186,530 | +9%
- Pending sales: 130 | +7%
- Days on market: 68 | +8%
- Inventory: 312 | -13%
- Months’ supply: 2.0 | -17%
Northwestern Wisconsin area
- New listings: 694 | +34%
- Avg. sales price: $179,664 | +11%
- Closed sales: 323 | -15%
- Days on market: 171 |-17%
- Inventory: 5,201 | -6%
- Months’ supply: 10.1 | -19%
West Central and Southwest Minnesota area
- New listings: 227 | +30%
- Avg. sales price: $142,296 | +3%
- Pending sales: 175 | +54%
- Days on market: 106 |-14%
- Inventory: 899 | -5%
- Months’ supply: 3.8 | -12%
Mankato area
- New listings: 113 | -4%
- strong>Avg. sales price: $191,421 | -6%
- Pending sales: 136 | +33%
- Days on market: 99 |-29%
- Inventory: 478 | -1%
- Months’ supply: 2.7 | -4%
Bemidji area
- New listings: 67 | +52%
- Median sales price: $193,250 | +19%
- Closed sales: 24 | +33%
- Inventory: 143 | -7%
- Months’ supply: 2.9 | -12%
Leech Lake and surrounding area
- New listings: 46 | +15%
- Median sales price: $161,200 | -21%
- Pending sales: 23 | -4%
- Days on market: 130 |+9%
- Inventory: 202 | -4%
- Months’ supply: 4.1 | +11%
Little Falls area
- New listings: 13 | -7%
- Median sales price: $148,000 | -5%
- Pending sales: 14 | -13%
- Days on market: 49 |+81%
- Inventory: 48 | +45%
- Months’ supply: 2.2 | +57%
