July 2021 Market Insights

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

• New listings: 8,378 | +10.7%
• Median sales price: $350,000 | +14.8%
• Closed sales: 7,468 | +19.9%
• Pending sales: 6,738 | -2.5%
• Days on market: 20 | -52.4%
• Inventory: 6,592 | -35.5%
• Months’ supply: 1.1 | -47.6%

June real estate pricing hits new record as inventory, listings play catch up game

The Twin Cities real estate market has never seen higher median prices than it has this year, and the June market just set a new record.

The market hit yet another new all-time high median price of $349,900 in June, a 14.8% jump from the same time period in 2020. Year-over-year pricing has now risen at least 10% for 10 consecutive months, with buyers continuing to compete for properties at all price points and sellers eager to take advantage.

Despite favorable conditions for sellers, market inventory has remained low throughout this extended up-cycle. But underlying data shows the scales may be starting to tip the other way, if only slightly.

June saw 8,378 new listings in total, the highest number of new properties listed for sale in one month over the past year and a 10.7% jump from June 2020. That monthly total is also the most homes listed for sale in a month since mid-2019.

Inventory does continue to lag behind buyer demand, but it too is showing some slight signs of a rebound. The market ended June with 6,592 homes for sale, a 35.5% decrease from June 2020. Despite still being a major dropoff from last year, this is the first time since February the market is within 40% of its 2020 inventory levels. It’s also the first time 6,500 or more homes have been available for sale since November 2020.

Of course, the market will remain friendly to sellers as long as demand remains so high, and so far this summer that hasn’t changed. 7,468 sales closed in June, just shy of a 20% jump from June 2020. The market continues to bull forward, with closings now up 13% year-to-date.

Whether July will maintain 2021’s lead on previous years remains to be seen. 6,738 sales were pending at the end of June, a 2.5% decrease from last year. That’s the first time this year that pending sales decreased from 2020.

Homes are now spending a median of just 20 days on the market. That’s the fastest turnaround time the market has ever seen, with the previous low of 24 days having come last month. For perspective: Homes were spending a little over four months on the market in 2009, and even in the hot 2016 atmosphere, sellers were still waiting nearly two months to sell their homes on average.

As long as pricing remains this high and closings occur so soon after listing, sellers will continue to enjoy this sales atmosphere. Whether enough homes will be put up for sale to help balance the market, that’s an entirely different question.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.8% (as of May 2021)
• Average rates for 30-year conforming mortgage 2.88%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Median pricing has now pushed to nearly $350,000, a significant new record for the Twin Cities.
• Properties are selling within an average of three weeks after hitting the market.
• The market is expected to stay busy during the summer, with an influx of new listings needed to keep up with demand.

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 June 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 % changes are year-over-year.

Alexandria Area

• New listings: 173 | +8%
• Avg. sales price: $306,543 | +20%
• Pending sales: 137 | -15%
• Days on market: 32 | -45%
• Inventory: 177 | -47%
• Months’ supply: 1.6 | -54%

Brainerd area

• New listings: 750 | -4%
• Avg. sales price: $313,283 | +25%
• Closed sales: 587 | -14%
• Days on market: 27 | -62%
• Inventory: 771 | -54%
• Months’ supply: 1.5 | -59%

Duluth area

• New listings: 628 | +1%
• Avg. sales price: $288,512 | +23%
• Closed sales: 468 | +6%
• Days on market: 30 | -46%
• Inventory: 628 | +1%
• Months’ supply: 2.3 | -38%

Southeast Minnesota area

• New listings: 741 | +7%
• Avg. sales price: $289,891 | +15%
• Closed sales: 756 | +12%
• Days on market: 24 | -53%
• Inventory: 567 | -47%
• Months’ supply: 1.0 | -50%

St. Cloud area

• New listings: 272 | +24%
• Avg. sales price: $257,647 | +16%
• Pending sales: 218 | +9%
• Days on market: 17 | -60%
• Inventory: 191 | -43%
• Months’ supply: 1.1 | -52%

Mankato area

• New listings: 248 | -2%
• Avg. sales price: $265,776 | +28%
• Pending sales: 202 | -24%
• Days on market: 76 | -33%
• Inventory: 222 | -49%
• Months’ supply: 1.2 | -50%

Northwestern Wisconsin area

• New listings: 789 | +3%
• Avg. sales price: $269,847 | +19%
• Closed sales: 638 | -7%
• Days on market: 83 | -28%
• Inventory: 1,824 | -29%
• Months’ supply: 3.3 | -38%

West Central Minnesota area

• New listings: 413 | -10%
• Avg. sales price: $201,585 | +29%
• Pending sales: 353 | -3%
• Days on market: 47 | -47%
• Inventory: 526 | -46%
• Months’ supply: 1.9 | -51%

Bemidji area

• New listings: 97 | +28%
• Median sales price: $235,000 | +7%
• Pending sales: 89 | +10%
• Inventory: 128 | -11%
• Months’ supply: 2.1 | -22%

Leech Lake and surrounding area

• New listings: 90 | -1%
• Median sales price: $299,500 | +34%
• Pending sales: 85 | -32%
• Days on market: 5 | -91%
• Inventory: 76 | -72%
• Months’ supply: 1.2 | -76%

Little Falls area

• New listings: 28 | -22%
• Median sales price: $206,500 | +20%
• Pending sales: 26 | -37%
• Days on market: 4 | -76%
• Inventory: 24 | -54%
• Months’ supply: 0.9 | -61%

Southwest Minnesota area

• New listings: 170 | -10%
• Median sales price: $136,650 | +18%
• Pending sales: 132 | +8%
• Days on market: 61 | -34%
• Months’ supply: 2.1 | -50%

Headwaters area

• New listings: 169 | +17%
• Median sales price: $249,900 | +37%
• Pending sales: 133 | -7%
• Days on market: 36 | -52%
• Months’ supply: 1.9 | -55%