September 2020 Market Insights

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

• New listings: 7,823 | +1.3%
• Median sales price: $315,000 | +9.8%
• Pending sales: 7,181 | +19.7%
• Days on market: 39 | -4.9%
• Inventory: 8,756 | -32.4%
• Months’ supply: 1.7 | -34.6%

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

New listings and pending and closed sales in August both jumped year-over-year as the market continued to play catchup with 2019 amid plenty of obstacles.

Buyer demand remained red-hot in August, unable to be cooled off by lagging inventory of homes for sale, down significantly from 2019 metrics that themselves were well below average.

August saw a total of 7,823 new listings, a 1.3 percent increase over 2019. That brings new listings through August to just within 4.0 percent of 2019 year-to-date. Pending sales were up nearly 20 percent to 7,181, signaling a busy fall to come. But inventory levels continue to fall, with just 8,756 homes for sale, a 1.7-month supply.

Prices continue to rise. The median sales price in August increased 9.8% to $315,000, the third consecutive month with median pricing above $300,000. Year-to-date median pricing is now at an even $300,000, up 6.8% from 2019. Sellers are capturing better than 100% of their original list price, a measure that didn’t happen in 2019 but has now occurred twice in 2020.

While the number of unemployment insurance weekly initial claims have been far lower in recent weeks than their peak in March and April, more than 1 million claims were filed per week in August, with weekly claims finally sinking below that mark at the end of the month. The local unemployment rate is still 8.5%, more than double the mark posted last August.

Despite this significant economic impact, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels, high buyer activity is expected to continue into the early fall market.

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: 8.2% (as of July 2020)
• Average rates for 30-year conforming mortgage 2.87%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 100.3% of their original list price in August.
• Pending sales and new listings were both 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 August 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: 145 | -14%
• Avg. sales price: $264,725 | +15%
• Pending sales: 161 | +11%
• Days on market: 58 | -8%
• Inventory: 260 | -44%
• Months’ supply: 2.5 | -46%

Brainerd area

• New listings: 734 | -1%
• Avg. sales price: $275,880 | +16%
• Closed sales: 662 | -3%
• Days on market: 61 | no change
• Inventory: 1,233 | -49%
• Months’ supply: 2.6 | -53%

Duluth area

• New listings: 494 | -11%
• Avg. sales price: $230,914 | +8%
• Closed sales: 505 | +10%
• Days on market: 57 | +39%
• Inventory: 1,241 | -28%
• Months’ supply: 3.8 | -30%

Southeast Minnesota area

• New listings: 702 | -4%
• Avg. sales price: $249,483 | +6%
• Closed sales: 644 | -12%
• Days on market: 46 | -4%
• Inventory: 971 | -37%
• Months’ supply: 1.8 | -40%

St. Cloud area

• New listings: 213 | -0%
• Avg. sales price: $231,082 | +6%
• Pending sales: 182 | +5%
• Days on market: 35 | -24%
• Inventory: 293 | -37%
• Months’ supply: 1.9 | -39%

Northwestern Wisconsin area

• New listings: 712 | +7%
• Avg. sales price: $236,790 | +12%
• Closed sales: 701| -2%
• Days on market: 111 | no change
• Inventory: 2,370 | -24%
• Months’ supply: 4.7 | -24%

West Central and Southwest Minnesota area

• New listings: 331 | -14%
• Avg. sales price: $177,764 | +15%
• Pending sales: 322 | +4%
• Days on market: 65 | -13%
• Inventory: 869 | -32%
• Months’ supply: 3.5 | -38%

Bemidji area

• New listings: 85 | +5%
• Median sales price: $185,200 | +13%
• Closed sales: 69 | -4%
• Inventory: 126 | -46%
• Months’ supply: 2.4 | -51%

Leech Lake and surrounding area

• New listings: 87 | -3%
• Median sales price: $236,600 | +19%
• Pending sales: 98 | +31%
• Days on market: 48 | no change
• Inventory: 180 | -59%
• Months’ supply: 3.1 | -64%

Little Falls area

• New listings: 41 | +71%
• Median sales price: $180,000 | -2%
• Pending sales: 35 | +46%
• Days on market: 14 |-30%
• Inventory: 46 | -32%
• Months’ supply: 1.9 | -34%