April 2021 Market Insights

Key insights from March 2021 (compared to March 2020)*

• New listings: 6,587 | -11.6%
• Median sales price: $327,500 | +10.3%
• Closed sales: 4,342 | +2.9%
• Pending sales: 5,747 | +12.1%
• Days on market: 38 | -37.7%
• Inventory: 4,907 | -50.7%
• Months’ supply: 0.9 | -52.6%

Buyer competition intensifies further in March, pricing reaches new high

The Twin Cities real estate market provided no relief for homebuyers in March, signaling a competitive spring and summer market to come.

The market hit a new high median price of $327,500 in March, an emphatic 10.3 percent jump from March 2020. That’s significant not only because it’s a new record, but because last March’s median sales price of just $297,000 was also a record at the time. For perspective, the median sales price in March 2016 was just over $225,000.

Among the many factors pushing pricing higher: There just aren’t enough homes for sale to balance the market. March’s inventory of 4,907 homes for sale is down more than half from last March, when COVID was beginning to affect the sales market. Listings do tend to rise through the summer, but an inventory representing a 0.9-month supply is a low starting point to rebound from.

The low inventory certainly isn’t due to lack of demand. 4,342 sales closed in March, which is a 2.9 percent increase from last year. All signs point to April being another busy month as well, with another 5,747 sales pending at months’ end. Sales so far in 2021 are up 7.6 percent year-to-date over 2020’s record pace.

With low inventory and high buyer demand, newly listed homes continue to sell quickly. A typical home spent 38 days on the market before selling in March, down 37.7 percent from the same point last year.

If the appeal of selling quickly doesn’t attract more sellers, perhaps selling for a premium will. Buyers received 101.9 percent of their original list price in March, another first for the Twin Cities metro. The market posted a handful of months with sellers receiving higher than list price, but had never made the leap above 101 percent.

Looking ahead, the home sales market continues to call out for more inventory for sale. Sellers entering the market are likely to encounter healthy interest in their homes, particularly those in good shape and on the lower end of the pricing spectrum. Those looking to make the jump up from a starter home to an upgrade may find themselves with plenty of interested buyers but plenty of competition for their future home.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.4% (as of February 2021)
• Average rates for 30-year conforming mortgage 3.04%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Inventory of homes for sale is now under a one-month supply, the lowest in recent memory.
• Properties are selling for 101.9 percent of their original asking price and in just over a month after hitting the market.
• 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.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for March 2021.

**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: 128 | -9%
• Avg. sales price: $228,785 | +11%
• Pending sales: 112 | +17%
• Days on market: 59 | -34%
• Inventory: 106 | -69%
• Months’ supply: 0.9 | -73%

Brainerd area

• New listings: 529 | -16%
• Avg. sales price: $237,270 | +1%
• Closed sales: 292 | +9%
• Days on market: 56 | -36%
• Inventory: 502 | -69%
• Months’ supply: 1.0 | -72%

Duluth area

• New listings: 396 | -5%
• Avg. sales price: $235,527 | +9%
• Closed sales: 206 | +1%
• Days on market: 63 | -13%
• Inventory: 566 | -49%
• Months’ supply: 1.5 | -57%

Southeast Minnesota area

• New listings: 662 | -6%
• Avg. sales price: $264,223 | +11%
• Closed sales: 407 | -7%
• Days on market: 44 | -36%
• Inventory: 466 | -61%
• Months’ supply: 0.8 | -64%

St. Cloud area

• New listings: 215 | +8%
• Avg. sales price: $239,262 | +14%
• Pending sales: 207 | +22%
• Days on market: 41 | -31%
• Inventory: 128 | -62%
• Months’ supply: 0.8 | -62%

Mankato area

• New listings: 217 | -19%
• Avg. sales price: $215,731 | +14%
• Pending sales: 179 | -8%
• Days on market: 112 | -19%
• Inventory: 204 | -60%
• Months’ supply: 1.0 | -66%

Northwestern Wisconsin area

• New listings: 318 | -31%
• Avg. sales price: $236,680 | +20%
• Closed sales: 290 | +22%
• Days on market: 144 | +4%
• Inventory: 1,180 | -42%
• Months’ supply: 2.2 | -46%

West Central Minnesota area

• New listings: 286 | -5%
• Avg. sales price: $162,220 | +9%
• Pending sales: 298 | +19%
• Days on market: 72 | -17%
• Inventory: 457 | -52%
• Months’ supply: 1.7 | -56%

Bemidji area

• New listings: 79 | +5%
• Median sales price: $184,900 | -3%
• Pending sales: 71 | +51%
• Inventory: 57 | -62%
• Months’ supply: 0.9 | -68%

Leech Lake and surrounding area

• New listings: 38 | -51%
• Median sales price: $241,250 | -16%
• Pending sales: 41 | +95%
• Days on market: 78 | -20%
• Inventory: 48 | -81%
• Months’ supply: 0.7 | -86%

Little Falls area

• New listings: 17 | -47%
• Median sales price: $156,250 | -8%
• Pending sales: 22 | -12%
• Days on market: 18 | -25%
• Inventory: 18 | -63%
• Months’ supply: 0.7 | -68%

Southwest Minnesota area

• New listings: 97 | 0%
• Median sales price: $133,750 | +4%
• Pending sales: 106 | +38%
• Days on market: 86 | +18%
• Months’ supply: 1.9 | -54%

Headwaters area

• New listings: 118 | -19%
• Median sales price: $169,900 | -18%
• Pending sales: 105 | +52%
• Days on market: 71 | -20%
• Months’ supply: 1.0 | -76%