February 2020 Market Insights

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

• New listings: 4,330 | -1.8%
• Median sales price: $270,000 | +4.2%
• Pending sales: 3,302 | +1.2%
• Days on market: 66 | +1.5%
• Inventory: 7,595 | -14.9%
• Months’ supply: 1.5 | -16.7%

Promising potential for a strong spring market

We start off the year with continued low interest rates, low unemployment and rising rents nationally. Traditionally, these factors indicate an optimistic start to the 2020 housing market and potential for significant residential real estate activity this spring.

January numbers for the Twin Cities housing market continue to reflect inventory challenges. Sellers listed fewer homes for sale while buyers signed more purchase agreements and closed more deals. New listings decreased to 4,330, a 1.8% drop from January of last year. Inventory levels also fell to 7,595, a significant 14.9% decrease.

Prices continued to gain traction as the median sales price increased 4.2% to $270,000. The average number of days on the market until sale increased 1.5% to 66 days and the months’ supply of homes for sale was down 16.5% to 1.5 months.

The inventory challenge is still concentrated to the under $250,000 price point where first-time homebuyers and downsizers are competing. The number of listings above $250,000 in the Twin Cities region increased in January, making the move-up and upper-bracket segments more balanced and better supplied.

The National Association of REALTORS® Chief Economist Lawrence Yun sees good news for home prices. “National median home price growth is in no danger of falling due to inventory shortages and will rise by 4%,” the long-term NAR economist predicts. He is also expecting the new-home construction market sales to increase 10%.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.0%
• Average rates for 30-year conforming mortgage: 3.49%**
• The median sales price increased 4.2%

The long and the short of it

• Prices continue to rise; the January average sales price was $325,972.
• Sellers received 97% of their original list price in January.
• The average, cumulative number of days on the market increased slightly to 66 days.

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.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for January 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: 69 | +13%
• Avg. sales price: $204,325 | no change
• Pending sales: 58 | +29%
• Days on market: 64 | -26%
• Inventory: 267 | -11%
• Months’ supply: 2.9 | -3%

Brainerd area

• New listings: 279 | -16%
• Avg. sales price: $211,724 | -5%
• Closed sales: 205 | +8%
• Days on market: 78 | -17%
• Inventory: 1,101 | -27%
• Months’ supply: 2.8 | -26%

Duluth area

• New listings: 241 | -7%
• Avg. sales price: $179,941 | -3%
• Closed sales: 160 | -16%
• Days on market: 73 | +16%
• Inventory: 1,079 | +1%
• Months’ supply: 3.5 | no change

Southeast Minnesota area

• New listings: 355 | -5%
• Avg. sales price: $233,103 | +7%
• Closed sales: 314 | +9%
• Days on market: 71 | no change
• Inventory: 1,050 | -13%
• Months’ supply: 2.0 | -13%

St. Cloud area

• New listings: 141 | -3%
• Avg. sales price: $197,286 | -2%
• Pending sales: 98 | +4%
• Days on market: 63 | -32%
• Inventory: 311 | -12%
• Months’ supply: 2.0 | -13%

Northwestern Wisconsin area

• New listings: 572 | -7%
• Avg. sales price: $167,760 | -5%
• Closed sales: 402 | +13%
• Days on market: 192 |+3%
• Inventory: 5,075 | -9%
• Months’ supply: 9.5 | -23%

West Central and Southwest Minnesota area

• New listings: 193 | +7%
• Avg. sales price: $131,351 | -12%
• Pending sales: 147 | +7%
• Days on market: 87 |-25%
• Inventory: 912 | -4%
• Months’ supply: 3.9 | -7%

Mankato area

• New listings: 119 | -8%
• Avg. sales price: $168,953 | -15%
• Pending sales: 81 | -27%
• Days on market: 124 |+5%
• Inventory: 536 | +9%
• Months’ supply: 3.1 | +11%

Bemidji area

• New listings: 31 | -43%
• Median sales price: $204,250 | +34%
• Closed sales: 22 | +5%
• Inventory: 124 | -23%
• Months’ supply: 2.6 | -24%

Leech Lake and surrounding area

• New listings: 28 | -32%
• Median sales price: $152,450 | -22%
• Pending sales: 18 | -36%
• Days on market: 91 |-9%
• Inventory: 184 | -7%
• Months’ supply: 3.7 | +6%

Little Falls area

• New listings: 23 | +64%
• Median sales price: $149,900 | +7%
• Pending sales: 14 | no change
• Days on market: 47 |-20%
• Inventory: 50 | +32%
• Months’ supply: 2.2 | +38%