October 2020 Market Insights

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

• New listings: 7,771 | +9.8%
• Median sales price: $310,000 | +10.8%
• Closed sales: 6,583 | +21.1%
• Pending sales: 6,443 | +27.7%
• Days on market: 37 | -15.9%
• Inventory: 8,936 | -32.0%
• Months’ supply: 1.7 | -37.0%

Inventory remains short through August as listings and closed sales close gap on 2019

The Twin Cities real estate market saw its busiest September in years, with closed sales and new listings both up significantly over their peer months in 2019.

Closed sales ended September at 6,583, a 21.1% jump from last year, the third month in a row with more sales than 2019 and enough to bring year-to-date closings to 46,318, up 2.1% from the first nine months of 2019.

Month’s end saw 6,443 pending sales, a good sign for October as the market continues to catch up after a slow spring. Pending sales were 27.7% higher than in September 2019.

Pricing continued to push upward once again in September, with median sales prices sitting at $310,000, a 10.8% increase from last year. The median sales price for the year continues to hover just above $300,000, so far 7.9% higher than year-to-date in 2019. Sellers captured 100.5% of their original asking price in September and are now capturing 99.6% of their asking price so far this year.

Perhaps buoyed by pricing, sellers are starting to return to the market as well. 7,771 new homes were listed in September, a 9.8% jump from September 2019. New listings still remain down for the year by 2.2%, and the active inventory remains extremely low with only 8,936 homes for sale. That’s down 32% from September 2019, and represents only a 1.7-month supply.

In another good sign for the market, unemployment filings continue to edge downward, with weekly filings now in the 800,000 range and remaining relatively stable. The national unemployment rate is 7.9%, below 8% for the first time since the COVID-19 pandemic started in March.

Thanks to the continued interest of buyers and mortgage rates remaining near record lows, buyer activity is expected to continue.

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: 7.9% (as of August 2020)
• Average rates for 30-year conforming mortgage 2.81%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 100.5% of their original list price in September.
• Closed sales and new listings were both significantly higher than last year.
• 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.

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 September 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: 134 | +6%
• Avg. sales price: $275,577 | +26%
• Pending sales: 128 | +51%
• Days on market: 51 | -33%
• Inventory: 261 | -46%
• Months’ supply: 2.4 | -50%

Brainerd area

• New listings: 684 | +9%
• Avg. sales price: $266,312 | +10%
• Closed sales: 681 | +16%
• Days on market: 55 | -19%
• Inventory: 1,125 | -52%
• Months’ supply: 2.3 | -56%

Duluth area

• New listings: 476 | +7%
• Avg. sales price: $235,139 | +9%
• Closed sales: 503 | +43%
• Days on market: 58 | no change
• Inventory: 1,151 | -32%
• Months’ supply: 3.4 | -37%

Southeast Minnesota area

• New listings: 632 | -8%
• Avg. sales price: $254,377 | +13%
• Closed sales: 642 | +20%
• Days on market: 44 | -12%
• Inventory: 922 | -43%
• Months’ supply: 1.7 | -47%

St. Cloud area

• New listings: 215 | +6%
• Avg. sales price: $246,531 | +16%
• Pending sales: 194 | +35%
• Days on market: 42 | -11%
• Inventory: 287 | -41%
• Months’ supply: 1.8 | -44%

Northwestern Wisconsin area

• New listings: 677 | +6%
• Avg. sales price: $246,048 | +21%
• Closed sales: 695| +16%
• Days on market: 115 | -3%
• Inventory: 2,272 | -26%
• Months’ supply: 4.5 | +13%

West Central and Southwest Minnesota area

• New listings: 353 | +6%
• Avg. sales price: $186,856 | +20%
• Pending sales: 344 | +43%
• Days on market: 71 | +3%
• Inventory: 847 | -33%
• Months’ supply: 3.3 | -41%

Bemidji area

• New listings: 74 | +40%
• Median sales price: $197,835 | +6%
• Pending sales: 76 | +25%
• Inventory: 123 | -42%
• Months’ supply: 2.2 | -45%

Leech Lake and surrounding area

• New listings: 97 | +73%
• Median sales price: $262,500 | +19%
• Pending sales: 102 | +67%
• Days on market: 52 | -21%
• Inventory: 176 | -54%
• Months’ supply: 2.9 | -28%

Little Falls area

• New listings: 30 | +11%
• Median sales price: $146,700 | -13%
• Pending sales: 31 | -49%
• Days on market: 13 |-80%
• Inventory: 47 | -30%
• Months’ supply: 1.8 | -55%