September 2022 Market Insights

Key insights from August 2022 (compared to August 2021)*

• New listings: 6,186 | -19.9%
• Median sales price: $369,750 | +5.6%
• Closed sales: 5,568 | -20.3%
• Pending sales: 4,981 | -23.8%
• Days on market: 26 | +18.2%
• Inventory: 8,552 | +1.3%
• Months’ supply: 1.7 | +13.3%

Buyer competition remains high as volume of listings, sales slow down

The long and the short of it

• Median pricing remained high but ticked downward to $369,750.
• The inventory of homes for sale jumped 1.3% compared to last year, with a 1.7-month supply of homes now for sale.
• There is still quite some distance to cover before the market approaches balance between supply and demand.

Sales and listing activity around the 13-county Twin Cities metro continued its steady decline in August, but pricing and pace of sales remained indicative of a highly competitive market for top-notch properties.

5,568 sales closed this past month, down 20.3% from the same period in 2021. Listings equally trended downward, with 6,186 new properties hitting the market in all, down 19.9% year-over-year.

Some may point to those numbers as a sign of a slowing market, but other metrics show that competition remains strong for desirable homes. Pricing remained near record levels, with the median home selling for $369,750, up 5.6% from August 2021. The median home price in the Twin Cities first crossed $350,000 in March, then a record, and has remained there for six months.

Sellers received 99.9% of their original list price in August, down from 102% in July but still significantly up from historical levels. Before 2021, the market typically topped out right around 100% of original list price.

Homes are also selling quickly. The typical property sold in 26 days in August, four days more than a year ago but still down significantly from recent years. Average time on the market hasn’t even hit two months, a relatively low number for the Twin Cities, since 2020.

One positive for buyers is that inventory continues to rise, albeit slowly. At month’s end there were 8,552 homes for sale in our market, a 1.7-month supply. That’s up 1.3% from August 2021.

Mortgage rates will continue to play a role in buyer and seller decisions, with rates hitting 6.0% near the end of the month for the first time in more than a decade. Buyers looking to reduce the impact from rising rates may seek alternative options, such as buying mortgage points, to lessen the interest they’ll have to pay.

Edina Realty’s Sharry Schmid recently dug into the trends we’re seeing in the Twin Cities, and she explained why strong underlying fundamentals like on-time mortgage payments and low employment are reasons to be optimistic for what’s ahead.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.0% (as of July 2022)
• Average rates for 30-year conforming mortgage 6.02%**
• Interest rates hadn’t been at 6% or higher since 2008, according to Freddie Mac.

Ready to help

We are here to help you confidently navigate your housing needs, now and always. Whether you are researching future options or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for August 2022.

**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 % changes are year-over-year.

Alexandria Area

• New listings: 109 | -38%
• Avg. sales price: $303,168 | +8%
• Pending sales: 124 | -22%
• Days on market: 27 | +17%
• Inventory: 173 | -23%
• Months’ supply: 1.9 | -5%

Brainerd area

• New listings: 694 | -14%
• Avg. sales price: $361,770 | +14%
• Closed sales: 628 | +3%
• Days on market: 29 | +21%
• Inventory: 1,140 | +11%
• Months’ supply: 2.4 | +14%

Lake Superior area

• New listings: 454 | na
• Avg. sales price: $281,912 | +4%
• Pending sales: 440 | -13%
• Days on market: 22 | -19%
• Inventory: 769| +10%
• Months’ supply: 2.5 | +32%

Southeast Minnesota area

• New listings: 633 | -17%
• Avg. sales price: $309,389 | +12%
• Closed sales: 604 | -5%
• Days on market: 32 | +28%
• Inventory: 870 | +14%
• Months’ supply: 1.7 | +21%

St. Cloud area

• New listings: 162 | -30%
• Avg. sales price: $287,941 | +10%
• Pending sales: 168 | -14%
• Days on market: 28 | +33%
• Inventory: 201 | -8%
• Months’ supply: 1.4 | +8%

Mankato area

• New listings: 191 | -22%
• Avg. sales price: $273,434 | +14%
• Pending sales: 162 | -9%
• Days on market: 64 | -2%
• Inventory: 313 | +15%
• Months’ supply: 1.8 | +20%

Northwestern Wisconsin area

• New listings: 592 | -14%
• Avg. sales price: $298,678 | +8%
• Closed sales: 568 | -15%
• Days on market: 64 | -12%
• Inventory: 1,617 | -14%
• Months’ supply: 3.2 | -9%

West Central Minnesota area

• New listings: 331 | -11%
• Avg. sales price: $202,629 | -1%
• Pending sales: 343 | +7%
• Days on market: 35 | -10%
• Inventory: 562 | -2%
• Months’ supply: 2.2 | +5%

Bemidji area

• New listings: 75 | +0%
• Median sales price: $264,900 | +19%
• Pending sales: 65 | -12%
• Inventory: 140 | +6%
• Months’ supply: 2.6 | +18%

Leech Lake and surrounding area

• New listings: 77 | -25%
• Median sales price: $350,000 | +39%
• Pending sales: 89 | +22%
• Days on market: 18 | +157%
• Inventory: 161 | +22%
• Months’ supply: 3.1 | +41%

Little Falls area

• New listings: 30 | -21%
• Median sales price: $180,000 | -4%
• Pending sales: 33 | +10%
• Days on market: 14 | +17%
• Inventory: 29 | -3%
• Months’ supply: 1.3 | +8%

Southwest Minnesota area

• New listings: 118 | -2%
• Median sales price: $155,000 | na
• Pending sales: 125 | na
• Days on market: 44 | +33%
• Months’ supply: 2.5 | +14%

Headwaters area

• New listings: 129 | -12%
• Median sales price: $264,900 | +15%
• Pending sales: 123 | -7%
• Days on market: 30 | -21%
• Months’ supply: 2.9 | +26%