Key insights from August 2019 (compared to August 2018)*
- New listings: 7,678 | -2.0%
- Median sales price: $286,800 | +7.0%
- Pending sales: 5,904 | +3.2%
- Days on market: 41 | +2.5%
- Inventory: 12,238 | -5.5%
- Months’ supply: 2.5 | -3.8%
August numbers show stability
The latest numbers for Twin Cities residential real estate show stability along with signs of deceleration. The median sales price continued to rise, landing at $286,800 for the month. Pending sales were on the rise—a measure of signed contracts and future demand. New listings slipped 2.0 percent, thwarting some buyers’ hopes of taking advantage of historically low rates.
- Pending sales up 3.2% for the month but down slightly for 2019.
- Closed sales down 0.9% for the month and down 1.4% for the year.
One sign of market shift is days on market, which rose 2.5 percent year-over-year. Market times remain swift, but that’s the fourth year-over-year increase this year. Another sign of a changing market is the ratio of sold to list price. Sellers have been accepting a slightly lower share of their list price compared to the year prior for seven of the last eight months. This, along with other indicators, suggests the market is rebalancing. The landscape seems to be improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times.
The number of active listings for sale has been rising this year. Even so, the market remains tight—particularly for first-time buyers and downsizers competing in the sub-$300,000 segment where multiple offers and homes selling for over list price are commonplace. With just 2.5 months of supply, the Twin Cities is still significantly undersupplied. The move-up and upper-bracket segments are less competitive and better supplied. Given some of the recent economic uncertainty, it’s worth noting that the Twin Cities market is well-positioned to withstand an economic downturn.
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Economic check up
- Minneapolis-St. Paul area unemployment rate: 3.1%
- Average rates for 30-year conforming mortgage: 3.73%**
- Condo sales decreased 6.2%
- Townhome sales decreased 7.8%
- Single family sales increased 1.4%
- New construction sales decreased 5.0%
- The median sales price increased 7.0%
The long and the short of it
- Prices continue to rise with a record-high median sales price for August.
- Sales for condos, townhomes and new construction fell when compared to last year.
- Lower price points remain in high demand and still favor sellers.
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.
Wondering about iBuyers and instant offers? Find out what to expect, including fees, and the benefit of getting a second opinion from a Realtor.
*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for August 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: 159 | +1%
- Avg. sales price: $236,657 | +8%
- Pending sales: 125 | +10%
- Days on market: 67 | +2%
- Inventory: 464 | -16%
- Months’ supply: 4.9 | -12%
Brainerd area
- New listings: 656 | -5%
- Avg. sales price: $240,785 | +2%
- Closed sales: 584 | -7%
- Days on market: 58 | -18%
- Inventory: 2,074 | -6%
- Months’ supply: 5.3 | -4%
Duluth area
- New listings: 551 | +5%
- Avg. sales price: $214,093 | +4%
- Closed sales: 293 | -37%
- Days on market: 41 | -29%
- Inventory: 1,855 | +6%
- Months’ supply: 6.2 | -6%
Southeast Minnesota area
- New listings: 729 | +6%
- Avg. sales price: $235,035 | +2%
- Closed sales: 679 | +20%
- Days on market: 48 | -2%
- Inventory: 1,483 | 0%
- Months’ supply: 2.9 | -3%
St. Cloud area
- New listings: 211 | -16%
- Avg. sales price: $217,867 | +6%
- Pending sales: 168 | -6%
- Days on market: 46 | +28%
- Inventory: 456 | -1%
- Months’ supply: 3.0 | +3%
Northwestern Wisconsin area
- New listings: 1,100 | -2%
- Avg. sales price: $180,607 | 0%
- Closed sales: 934 | +9%
- Days on market: 157 |-11%
- Inventory: 6,737 | -5%
- Months’ supply: 10.6 | -35%
West Central and Southwest Minnesota area
- New listings: 369 | +7%
- Avg. sales price: $156,161 | +2%
- Pending sales: 295 | +37%
- Days on market: 74 |-7%
- Inventory: 1,208 | +8%
- Months’ supply: 5.4 | -4%
Mankato area
- New listings: 282 | -6%
- Avg. sales price: $211,899 | +6%
- Pending sales: 172 | -20%
- Days on market: 86 |-1%
- Inventory: 704 | +13%
- Months' supply: 4.2 | +20%
