October 2019 Market Insights

Key insights from September 2019 (compared to September 2018)*

• New listings: 7,041 | +2.5%
• Median sales price: $279,250 | +6.6%
• Pending sales: 4,957 | +2.9%
• Days on market: 43 | +2.4%
• Inventory: 12,478 | -5.6%
• Months’ supply: 2.5 | -7.4%

September numbers reflect a stable market

The latest numbers for Twin Cities residential real estate show a stable market. Even though more buyers are closing on homes, the urgency has subsided somewhat, and market times have lengthened. Days on the market rose 2.4% from last September, marking the fifth year-over-year increase in the last seven months.

Sales rose 3.4% and the median sales price increased 6.6% to $279,250. Pending sales—a measure of signed contracts and future demand—also increased. Both pending and closed sales are down slightly for the year so far, but that may change. New listings were up 2.5%, helping some buyers take advantage of historically low rates.

The market remains tight for buyers competing in the under $300,000 segment where popular communities are still seeing multiple offers and homes selling for over list price. Despite the demand, builders struggle to provide inventory in that undersupplied segment due to high land and material costs combined with a significant labor shortage and tricky regulations. The shortage of affordable homes has led to an increase in remodeling as people are staying in their homes longer.

The cooler weather typically signals a slowdown in the housing market. As we move into the final months of 2019, buyers will likely find fewer homes coming on the market, but also less competition for those homes. On the national level, buyer and seller activity remained strong in September due to low mortgage rates and a healthy economy.

There are current discussions in Washington surrounding the housing finance system, including the re-privatization of Fannie Mae and Freddie Mac, and reforms to federal agencies involved with financing substantial portions of the mortgages made every year. Many of these policy conversations and eventual changes will take months or years to implement and their impact is not yet clear. While Halloween decorations are beginning to adorn homes around the country, the real estate market this fall is looking far from scary.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.9%
• Average rates for 30-year conforming mortgage: 3.69%**
• Condo sales increased 1.4%
• Townhome sales decreased 0.5%
• Single family sales increased 5.5%
• New construction sales increased 2.6%
• The median sales price increased 6.6%

The long and the short of it

• Prices continue to rise; the September average sales price was $328,422.
• Previously-owned sales and new construction sales increased.
• Short sales and foreclosure sales dropped significantly.

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

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for September 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: 134 | +2%
• Avg. sales price: $215,379 | +4%
• Pending sales: 74 | -20%
• Days on market: 59 | +13%
• Inventory: 476 | -11%
• Months’ supply: 5.1 | -6%

Brainerd area

• New listings: 564 | +10%
• Avg. sales price: $245,175 | +7%
• Closed sales: 524 | +12%
• Days on market: 65 | -13%
• Inventory: 1,980 | -6%
• Months’ supply: 5.0 | -6%

Duluth area

• New listings: 440 | +12%
• Avg. sales price: $214,605 | +3%
• Closed sales: 348 | +1%
• Days on market: 58 | +7%
• Inventory: 1,811 | +7%
• Months’ supply: 6.0 | -3%

Southeast Minnesota area

• New listings: 683 | +20%
• Avg. sales price: $225,712 | +3%
• Closed sales: 526 | +15%
• Days on market: 51 | 0%
• Inventory: 1,568 | +4%
• Months’ supply: 3.0 | -3%

St. Cloud area

• New listings: 199 | +2%
• Avg. sales price: $211,674 | +10%
• Pending sales: 144 | -5%
• Days on market: 46 | +7%
• Inventory: 468 | minimal
• Months’ supply: 3.1 | +3%

Northwestern Wisconsin area

• New listings: 896 | -1%
• Avg. sales price: $182,320 | +8%
• Closed sales: 735 | +9%
• Days on market: 130 |-31%
• Inventory: 6,652 | -3%
• Months’ supply: 10.3 | -31%

West Central and Southwest Minnesota area

• New listings: 323 | +32%
• Avg. sales price: $158,493 | +6%
• Pending sales: 231 | +31%
• Days on market: 70 |-7%
• Inventory: 1,213 | +11%
• Months’ supply: 5.5 | +2%

Mankato area

• New listings: 234 | -3%
• Avg. sales price: $192,957 | -2%
• Pending sales: 135 | -25%
• Days on market: 89 |-3%
• Inventory: 729 | +14%
• Months’ supply: 4.4 | +26%