August 2022 Market Insights

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

• New listings: 6,845 | -17.0%
• Median sales price: $375,000 | +7.1%
• Closed sales: 5,442 | -20.2%
• Pending sales: 4,807 | -23.3%
• Days on market: 22 | +15.8%
• Inventory: 8,694 | +4.5%
• Months’ supply: 1.7 | +13.3%

New listings pick up as sales prices once again set record

The long and the short of it

• Median pricing remained high but ticked downward to $375,000.
• The inventory of homes for sale jumped 4.5% 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.

July brought a slowdown in total sales activity and new listings across the 13-county Twin Cities real estate market, but the attractive properties that were listed for sale continued to draw competition and near-record pricing.

The month saw 5,442 total closed sales, down 20.2% from the same month last year. That brings overall closings for the year to 11.2% below where we were at this time in 2021.

But the reduction in sales was not due to a reduction in buyer appetite. The median sales price for our market was $375,000, down $5,000 from last month but still up 7.1% from the same month of 2021. Sellers received an average of 101.5% of their asking price, well above historical levels.

Homes are still selling quickly. The typical home spent just 22 days on the market in August, up three days from the same month a year ago but still selling far more quickly than what has been normal over the past several years.

One positive development for buyers has been the inventory’s steady growth throughout the year. At month’s end, the total Twin Cities inventory of homes for sale reached 8,694, up 4.5% from July 2021. Inventory has risen each month since January and now represents a 1.7-month supply, the highest it’s been since October 2020. Experts typically consider a five- or six-month supply a “balanced” market.

New listings have slowed down over the past couple of months, however. In July, 6,845 homes hit the market for sale, down 17% from July 2021.

With mortgage rates starting to stabilize in the low 5 percent range, experts say buyers and sellers will become more comfortable in the market and re-launch their previous plans that may have been temporarily delayed due to economic factors such as inflation or rising interest rates. 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 excited for what’s ahead.

Buyers looking to reduce the impact from rising rates may also seek alternative options, such as buying mortgage points.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.2% (as of June 2022)
• Average rates for 30-year conforming mortgage 5.13%**
• Interest rates hadn’t been at 5% or higher since 2018, 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. Your wellness and safety continue to be our top priority.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for July 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: 120 | -34%
• Avg. sales price: $311,051 | +16%
• Pending sales: 118 | -20%
• Days on market: 31 | +35%
• Inventory: 192 | -9%
• Months’ supply: 2.1 | +11%

Brainerd area

• New listings: 757 | -2%
• Avg. sales price: $385,830 | +32%
• Closed sales: 554 | -3%
• Days on market: 25 | +9%
• Inventory: 1,150 | +20%
• Months’ supply: 2.4 | +26%

Lake Superior area

• New listings: 494 | -6%
• Avg. sales price: $284,732 | +11%
• Pending sales: 390 | -18%
• Days on market: 21 | -5%
• Inventory: 776| +7%
• Months’ supply: 2.5 | +25%

Southeast Minnesota area

• New listings: 622 | -17%
• Avg. sales price: $296,713 | +3%
• Closed sales: 528 | -14%
• Days on market: 23 | +10%
• Inventory: 839 | +18%
• Months’ supply: 1.6 | +23%

St. Cloud area

• New listings: 177 | -27%
• Avg. sales price: $281,867 | +13%
• Pending sales: 169 | -23%
• Days on market: 24 | +50%
• Inventory: 227 | +9%
• Months’ supply: 1.6 | +33%

Mankato area

• New listings: 206 | -13%
• Avg. sales price: $281,951 | +4%
• Pending sales: 190 | -22%
• Days on market: 58 | -16%
• Inventory: 321 | +42%
• Months’ supply: 1.9 | +58%

Northwestern Wisconsin area

• New listings: 651 | -18%
• Avg. sales price: $325,441 | +22%
• Closed sales: 559 | -17%
• Days on market: 61 | -22%
• Inventory: 1,608 | -13%
• Months’ supply: 3.1 | -9%

West Central Minnesota area

• New listings: 323 | -14%
• Avg. sales price: $229,569 | +21%
• Pending sales: 274 | -18%
• Days on market: 31 | -35%
• Inventory: 588 | +6%
• Months’ supply: 2.3 | +15%

Bemidji area

• New listings: 85 | +2%
• Median sales price: $247,000 | +5%
• Pending sales: 63 | -17%
• Inventory: 126 | -5%
• Months’ supply: 2.3 | +5%

Leech Lake and surrounding area

• New listings: 102 | -1%
• Median sales price: $330,000 | +25%
• Pending sales: 74 | n/a
• Days on market: 10 | +43%
• Inventory: 171 | +60%
• Months’ supply: 3.3 | +94%

Little Falls area

• New listings: 28 | -22%
• Median sales price: $247,450 | +5%
• Pending sales: 13 | -50%
• Days on market: 12 | +9%
• Inventory: 37 | +28%
• Months’ supply: 1.7 | +42%

Southwest Minnesota area

• New listings: 139 | n/a
• Median sales price: $177,500 | +18%
• Pending sales: 100 | -16%
• Days on market: 35 | -42%
• Months’ supply: 2.6 | +18%

Headwaters area

• New listings: 153 | +3%
• Median sales price: $249,900 | +6%
• Pending sales: 134 | +3%
• Days on market: 41 | +28%
• Months’ supply: 3.0 | +36%