January 2021 Market Insights

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

• New listings: 3,088 | +22.2%
• Median sales price: $307,000 | +10.0%
• Closed sales: 5,179 | +7.7%
• Pending sales: 3,680 | +15.0%
• Days on market: 39 | -30.4%
• Inventory: 5,080 | -39.3%
• Months’ supply: 0.9 | -47.1%

Strong December for home sales, pricing ends 2020 ahead of all 2019 marks

The Twin Cities real estate market closed 2020 with a bang in December, ensuring that every major metric for the year finished well ahead of its 2019 counterparts.

The month ended with 5,179 closed sales, a number more historically comparable to the fall market than the dead of winter, and up nearly 21 percent from 2019. Closed sales ended the year up 7.7 percent to 64,479 total. Sales were up month over month all year in 2020 with the exception of May and June, when the industry was still adjusting to new challenges presented by COVID-19. Three of the final four months of the year saw 20 percent (or higher) increases in total sales.

Not only did more homes sell; they sold for higher prices. December’s median sales price was $307,000, a 10 percent jump from December 2019 and the seventh consecutive month with a median price above $300,000. Significantly, the median sales price ended 2020 at $305,000, a new all-time high water mark for the Twin Cities market.

Signs so far point to a strong start to 2021 as well. 3,680 sales were pending at the end of the year, up 15 percent from 2019 and a positive sign for activity in January.

Sellers continue to see encouraging buyer activity all over the market. December sellers received 99.7 percent of their original list price, which is a 2.5 percent increase from last year. Sellers for the year received 99.8 percent of their original list price, a full point up from the percentages measured in 2018 (98.9 percent) and 2019 (98.8 percent).

Sellers are also watching their properties sell quickly. Homes sold in December averaged 39 days on the market until sale, down more than two weeks (or 30.4 percent) from the same metric in December 2019. Homes do historically sell a little more slowly in the winter months, but wasn’t true of 2020. In fact, homes spent longer on the market in June and July than they did in November and December, a sign of the market’s bounceback after the uncertainty caused by COVID-19.

Inventory continues to be a challenge for the market. At year’s end, just 5,080 homes were actively listed, down a whopping 39.3 percent from December 2019. That represents less than a month’s supply of homes for sale and the lowest inventory of homes for sale in recent memory. For perspective, a balanced market typically has somewhere around a six month supply of homes for sale, which in the Twin Cities market equates to about 25,000 homes.

The pressure on existing inventory could be helped somewhat by December’s strong new listing activity. 3,088 homeowners listed their properties for sale in December, a major 22.2 percent jump from 2019. That kind of seller activity will continue to be needed, particularly early in the year, to raise market inventory to a more balanced level.

Edina Realty and other Realtors have established safe practices to reduce the risk of COVID-19 exposure while selling.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.9% (as of November 2020)
• Average rates for 30-year conforming mortgage 2.79%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 99.8% of their original list price in December.
• Inventory of homes for sale is now under a one-month supply, the lowest in recent memory.
• 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 December 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: 43 | +5%
• Avg. sales price: $267,565 | +27%
• Pending sales: 64 | +23%
• Days on market: 61 | -36%
• Inventory: 125 | -63%
• Months’ supply: 1.1 | -68%

Brainerd area

• New listings: 200 | +8%
• Avg. sales price: $263,107 | +12%
• Closed sales: 429 | +41%
• Days on market: 57 | -16%
• Inventory: 578 | -62%
• Months’ supply: 1.1 | -68%

Duluth area

• New listings: 133 | +7%
• Avg. sales price: $243,943 | +20%
• Closed sales: 362 | +47%
• Days on market: 62 | +3%
• Inventory: 681 | -41%
• Months’ supply: 1.9 | -49%

Southeast Minnesota area

• New listings: 250 | -4%
• Avg. sales price: $246,100 | +9%
• Closed sales: 515 | +13%
• Days on market: 51 | -22%
• Inventory: 538 | -55%
• Months’ supply: 1.0 | -57%

St. Cloud area

• New listings: 66 | -12%
• Avg. sales price: $207,165 | +10%
• Pending sales: 95 | +19%
• Days on market: 43 | -34%
• Inventory: 151 | -53%
• Months’ supply: 0.9 | -57%

Northwestern Wisconsin area

• New listings: 232 | +14%
• Avg. sales price: $229,813 | +12%
• Closed sales: 481 | +29%
• Days on market: 99 | -23%
• Inventory: 1,305 | -36%
• Months’ supply: 2.4 | -41%

West Central Minnesota area

• New listings: 139 | -3%
• Avg. sales price: $162,827 | +10%
• Pending sales: 216 | +52%
• Days on market: 74 | -12%
• Inventory: 552 | -44%
• Months’ supply: 2.1 | -50%

Bemidji area

• New listings: 25 | +0%
• Median sales price: $219,000 | +19%
• Pending sales: 35 | +21%
• Inventory: 67 | -55%
• Months’ supply: 1.1 | -61%

Leech Lake and surrounding area

• New listings: 13 | -35%
• Median sales price: $227,900 | +27%
• Pending sales: 45 | +96%
• Days on market: 40 | -17%
• Inventory: 59 | -72%
• Months’ supply: 0.9 | -79%

Little Falls area

• New listings: 13 | +63%
• Median sales price: $185,000 | -7%
• Pending sales: 18 | +38%
• Days on market: 17 |-15%
• Inventory: 14 | -75%
• Months’ supply: 0.5 | -80%