March 2022 Market Insights

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

• New listings: 4,427 | -7.3%
• Median sales price: $340,000 | +8.3%
• Closed sales: 3,020 | -15.3%
• Pending sales: 3,809 | -10.5%
• Days on market: 42 | -8.7%
• Inventory: 4,361 | -19.0%
• Months’ supply: 0.8 | -20.0%

Pricing remains high, inventory low in fast-paced Twin Cities real estate market

The long and the short of it

• Median pricing remains high, up 8.3% year-over-year to $340,000.
• The inventory of homes for sale crept a little closer to balanced but remained below even a single month’s supply.
• Sellers continue to hold an advantage, with no influx of inventory expected in the near future.

February brought more pressure on home buyers in the Twin Cities real estate market, with pricing remaining high, the pace of sales moving quickly and a relatively low number of homes available for sale throughout the market.

2,769 sales closed in February, down 15.3% from February 2021, as buyers worked hard to secure their preferences out of fewer overall options available. That’s the first time since February 2019 that fewer than 3,000 sales have closed in the month.

As things stand, March may also see fewer closed transactions. At the end of the month, another 3,809 sales were pending, down 10.5% from February 2021. Pending sales tend to provide an accurate preview of the month to come.

One number that hasn’t decreased in some time is the median sales price of homes in the Twin Cities. At $340,000 in February, median prices rose 8.3% from February 2021. Median sales prices for the year so far are up 9.1%, to $335,000.

What’s driving those prices? One major factor is a lack of supply. Right now, there are 4,361 homes for sale in the Twin Cities area, down 19% from the same time last year. That represents just a 0.8-month supply of listings, a major advantage for sellers, since a “balanced” market is considered one with a six-month supply. The last time the market had even a four-month supply was eight years ago.

That lack of inventory means that buyers are having to make competitive offers, and quickly. In February, the typical home spent 42 days, or six weeks, on the market. That’s up from last summer, when houses were selling in less than three weeks, but still down a handful of days from early 2021.

Sellers continue to enjoy that pace of activity and adjust their expectations accordingly. In February, the median original list price rose to $375,000, up 10.3% from last year’s already-active winter market. Sellers in all recouped 100.7% of their original list price over the course of the month, making it 9 of the past 12 months that list prices were exceeded.

What’s to come in March? For now, it looks like expectations should be for more of the same. 4,427 new properties were listed for sale in February, down 7.3% from February 2021. As the snow begins to melt off and the spring market fully kicks into gear, it will be interesting to see if more sellers attempt to take advantage of this market.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.5% (as of December 2021)
• Average rates for 30-year conforming mortgage 3.85%**
• Low interest rates continue to offer exceptional buying and refinancing opportunities.

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 February 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: 54 | -22%
• Avg. sales price: $259,292 | +14%
• Pending sales: 52 | -36%
• Days on market: 53 | -21%
• Inventory: 83 | -19%
• Months’ supply: 0.8 | -11%

Brainerd area

• New listings: 265 | -13%
• Avg. sales price: $272,382 | +8%
• Closed sales: 217 | -7%
• Days on market: 46 | -23%
• Inventory: 406 | -16%
• Months’ supply: 0.90 | na

Lake Superior area

• New listings: 169 | +1%
• Avg. sales price: $235,792 | +11%
• Closed sales: 142 | -20%
• Days on market: 44 | -38%
• Inventory: 400 | -21%
• Months’ supply: 1.2 | -14%

Southeast Minnesota area

• New listings: 403 | +0%
• Avg. sales price: $301,251 | +31%
• Closed sales: 314 | +5%
• Days on market: 46 | -13%
• Inventory: 440 | -2%
• Months’ supply: 0.8 | no change

St. Cloud area

• New listings: 105 | -21%
• Avg. sales price: $214,670 | -7%
• Pending sales: 111 | -19%
• Days on market: 42 | -32%
• Inventory: 93 | -30%
• Months’ supply: 0.6 | -25%

Mankato area

• New listings: 114 | -10%
• Avg. sales price: $226,096 | +6%
• Pending sales: 120 | +12%
• Days on market: 91 | -13%
• Inventory: 153 | -19%
• Months’ supply: 0.8 | -20%

Northwestern Wisconsin area

• New listings: 537 | +69%
• Avg. sales price: $249,813 | +6%
• Closed sales: 265 | -9%
• Days on market: 67 | -53%
• Inventory: 961 | -19%
• Months’ supply: 1.9 | -14%

West Central Minnesota area

• New listings: 181 | -4%
• Avg. sales price: $191,579 | +13%
• Pending sales: 194 | +7%
• Days on market: 57 | -31%
• Inventory: 331 | -33%
• Months’ supply: 1.2 | -33%

Bemidji area

• New listings: 36 | +6%
• Median sales price: $206,900 | +19%
• Pending sales: 36 | -14%
• Inventory: 56 | +22%
• Months’ supply: 0.9 | +13%

Leech Lake and surrounding area

• New listings: 28 | +33%
• Median sales price: $213,250 | -15%
• Pending sales: 17 | -37%
• Days on market: 34 | -6%
• Inventory: 52 | -4%
• Months’ supply: 1.0 | +25%