March 2021 Market Insights

Key insights from February 2021 (compared to February 2020)*

• New listings: 4,686 | -12.6%
• Median sales price: $314,000 | +11.5%
• Closed sales: 3,212 | +4.8%
• Pending sales: 4,226 | -0.1%
• Days on market: 46 | -31.3%
• Inventory: 4,670 | -46.3%
• Months’ supply: 0.8 | -52.9%

February pace of sales remains hot as market continues to tighten

The Twin Cities real estate market tightened further throughout February, pushing inventory in an already constrained market even lower and continuing to drive up competition and pricing.

By the end of February, just 4,670 homes remained listed for sale in the 16-county Twin Cities metro area. That’s a 46.3-percent dropoff from this time in 2020, when the market was already tight. With just 0.8 months’ supply available for sale, the market will need an influx of new homes for sale to approach balance, which is typically closer to a six-month supply.

A total of 3,212 sales closed in February, a slight 4.8 percent increase from the same time in 2020. With 4,226 sales pending at months’ end, almost exactly a match to February 2020’s number, a busy spring lies ahead.

Sellers continue to be favored by market conditions, with both the pace and pricing of sales continuing to pick up. The typical home spent 46 days on the market in February, which is down nearly a third from February 2020. Homes listed for sale are frequently subject to intense competition from buyers and multiple rounds of offers, pushing pricing ever higher.

The median sales price for February was $314,000, a new high for February and nearly 25 percent higher than measured in February 2019. The median price for the year-to-date is $307,000, up 11 percent from the same point last year.

Sellers in February received 100.1 percent of their original list price, continuing a trend that has put the typical sale above its original list price in six out of the last eight months.

Looking ahead, the home sales market continues to call out for more inventory for sale. Sellers entering the market are likely to encounter healthy interest in their homes, particularly those in good shape and on the lower end of the pricing spectrum.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.8% (as of January 2021)
• Average rates for 30-year conforming mortgage 3.09%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Inventory of homes for sale is now under a one-month supply, the lowest in recent memory.
• Properties are selling for 100.1 percent of their original asking price and in just over a month after hitting the market.
• The effect of COVID-19 on seller confidence continues to impact the housing market. See how Edina Realty is working to keep you safe during COVID-19.

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.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for February 2021.

**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: 69 | -13%
• Avg. sales price: $226,634 | +9%
• Pending sales: 81 | +29%
• Days on market: 67 | -12%
• Inventory: 103 | -67%
• Months’ supply: 0.9 | -72%

Brainerd area

• New listings: 306 | -25%
• Avg. sales price: $251,237 | +18%
• Closed sales: 233 | +21%
• Days on market: 60 | -38%
• Inventory: 484 | -67%
• Months’ supply: 0.9 | -73%

Duluth area

• New listings: 168 | -39%
• Avg. sales price: $213,235 | +18%
• Closed sales: 177 | +6%
• Days on market: 71 | -12%
• Inventory: 507 | -50%
• Months’ supply: 1.4 | -56%

Southeast Minnesota area

• New listings: 402 | -13%
• Avg. sales price: $230,556 | -2%
• Closed sales: 298 | -9%
• Days on market: 53 | -33%
• Inventory: 448 | -59%
• Months’ supply: 0.8 | -60%

St. Cloud area

• New listings: 133 | -2416
• Avg. sales price: $230,340 | +23%
• Pending sales: 137 | +6%
• Days on market: 62 | -9%
• Inventory: 132 | -60%
• Months’ supply: 0.8 | -62%

Northwestern Wisconsin area

• New listings: 318 | -31%
• Avg. sales price: $236,680 | +20%
• Closed sales: 290 | +22%
• Days on market: 144 | +4%
• Inventory: 1,180 | -42%
• Months’ supply: 2.2 | -46%

West Central Minnesota area

• New listings: 188 | -19%
• Avg. sales price: $169,586 | +20%
• Pending sales: 181 | +6%
• Days on market: 83 | -21%
• Inventory: 495 | -48%
• Months’ supply: 1.8 | -55%

Bemidji area

• New listings: 34 | -49%
• Median sales price: $174,500 | -10%
• Pending sales: 42 | +5%
• Inventory: 46 | -68%
• Months’ supply: 0.8 | -70%

Leech Lake and surrounding area

• New listings: 21 | -54%
• Median sales price: $250,500 | +55%
• Pending sales: 27 | +17%
• Days on market: 36 | -72%
• Inventory: 54 | -73%
• Months’ supply: 0.8 | -80%

Little Falls area

• New listings: 21 | +62%
• Median sales price: $225,000 | 52%
• Pending sales: 13 | -7%
• Days on market: 25 | -49%
• Inventory: 21 | -56%
• Months’ supply: 0.8 | -64%

Southwest Minnesota area

• New listings: 71 | -17%
• Median sales price: $117,250 | +20%
• Pending sales: 63 | +29%
• Days on market: 83 | -35%
• Months’ supply: 2.1 | -48%

Headwaters area

• New listings: 52 | -42%
• Median sales price: $184,750 | -2%
• Pending sales: 62 | +3%
• Days on market: 63 | -10%
• Months’ supply: 0.9 | -75%