May 2020 Market Insights

Key insights from April 2020 (compared to April 2019)*

• New listings: 5,967 | -22.9%
• Median sales price: $305,000 | +8.9%
• Pending sales: 4,612 | -20.1%
• Days on market: 47 | -17.5%
• Inventory: 9,279 | -13.1%
• Months’ supply: 1.8 | -18.2%

The spring market returns in May after a significant April setback

The month of April was the hardest hit so far by the impact of COVID-19, but recent Twin Cities housing market activity is already starting to show promising signs of a rebound.

April residential real estate numbers reflect an entire month of temporary closures and adjustments for many non-essential businesses. With unemployment on the rise and restrictions of many everyday activities, real estate agents rose to the challenge to continue service to those with buying and selling needs.

New listings in the Twin Cities region decreased 22.9% to 5,967. Pending sales were down 20.1% to 4,612. Inventory levels fell 13.1% to 9,279 units.

Prices continued to gain traction. The median sales price increased 8.9% to $305,000. The average number of days on the market until sale was down 17.5% to 47 days, and the monthly supply of homes for sale was down 18.2% to 1.8 months.

While the effect of COVID-19 continues to vary widely across the country, it is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to offer buyers and sellers additional comfort and options with their housing needs in the face of these challenges.

As you begin your home search through virtual tours and safe showings, 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: 3.4% (as of March 2020 – this is rapidly changing)
• Average rates for 30-year conforming mortgage: 3.24%**
• The average sales price increased 4.4% to $341,340.
• Extremely low interest rates offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 99.9% of their original list price in April.
• The average, cumulative number of days on the market decreased to 47 days.
• May residential real estate activity is on the rise, reflecting hope for a strong rebound in our market.

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.

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 April 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: 132 | -39%
• Avg. sales price: $212,983 | -1%
• Pending sales: 95 | -21%
• Days on market: 77 | -13%
• Inventory: 331 | -18%
• Months’ supply: 3.3 | -18%

Brainerd area

• New listings: 544 | -23%
• Avg. sales price: $217,832 | minimal
• Closed sales: 291 | -7%
• Days on market: 74 | -9%
• Inventory: 1,432 | -19%
• Months’ supply: 3.6 | -20%

Duluth area

• New listings: 371 | -33%
• Avg. sales price: $219,226 | +18%
• Closed sales: 223 | -8%
• Days on market: 63 | -6%
• Inventory: 1,220 | +2%
• Months’ supply: 4.1 | +8%

Southeast Minnesota area

• New listings: 579 | -30%
• Avg. sales price: $236,149 | +9%
• Closed sales: 435 | +4%
• Days on market: 64 | -2%
• Inventory: 1,123 | -19%
• Months’ supply: 2.1 | -25%

St. Cloud area

• New listings: 181 | -29%
• Avg. sales price: $214,938 | +11%
• Pending sales: 147 | -32%
• Days on market: 48 | -20%
• Inventory: 315 | -20%
• Months’ supply: 2.1 | -22%

Northwestern Wisconsin area

• New listings: 812 | -36%
• Avg. sales price: $199,361 | +16%
• Closed sales: 526 | -1%
• Days on market: 176 |-16%
• Inventory: 5,596 | -10%
• Months’ supply: 11 | -20%

West Central and Southwest Minnesota area

• New listings: 260 | -31%
• Avg. sales price: $157,444 | +10%
• Pending sales: 242 | +4%
• Days on market: 90 |-26%
• Inventory: 897 | -16%
• Months’ supply: 3.7 | -24%

Mankato area

• New listings: 199 | -35%
• Avg. sales price: $219,179 | +8%
• Pending sales: 186 | -23%
• Days on market: 133 |+8%
• Inventory: 497 | -5%
• Months’ supply: 2.9 | -6%

Bemidji area

• New listings: 79 | -25%
• Median sales price: $183,200 | +14%
• Closed sales: 42 | -5%
• Inventory: 162 | -8%
• Months’ supply: 3.3 | -13%

Leech Lake and surrounding area

• New listings: 76 | -33%
• Median sales price: $185,000 | -7%
• Pending sales: 45 | +10%
• Days on market: 47 |-27%
• Inventory: 279 | +1%
• Months’ supply: 5.7 | +12%

Little Falls area

• New listings: 28 | -18%
• Median sales price: $161,000 | -11%
• Pending sales: 24 | -4%
• Days on market: 41 |+128%
• Inventory: 58 | +12%
• Months’ supply: 2.6 | +13%