May 2021 Market Insights

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

• New listings: 7,468 | +21.7%
• Median sales price: $337,000 | +10.5%
• Closed sales: 5,088 | +8.8%
• Pending sales: 6,220 | +33.6%
• Days on market: 31 | -34.0%
• Inventory: 5,619 | -45.8%
• Months’ supply: 1.0 | -52.4%

Buyer competition drives prices higher; sellers benefit from reduced market times

New listings appeared up significantly from last April at 21.8%, but we must remember that most of us were staying pretty close to home this time last year as we learned more about COVID-19. So, while that number is up, supply is still being outpaced by buyer demand. In fact, many homebuyers are coming up with creative ways for their offer to stand out as they compete against multiple other would-be buyers.

The market hit a new high median price of $337,000 in April. Naturally, that leads to questions about affordability. Fortunately, low interest rates have kept affordability in check with a housing affordability index (HAI) of 139. For those new to HAI, an index of 139 generally means the median household income is 139% of what is necessary to qualify for the median-priced home. The higher the number, the greater the affordability.

We know that buyers are feeling the squeeze of low inventory, but on the flip side, sellers are reaping the benefits. In April, sellers received 103.4% of their original list price at sale, which means many homes are attracting more than asking price. Sellers are also enjoying shorter time on market at just 31 days on average—a drop from last year’s 47 days.

Overall, there were 5,088 sales closed in April, which is an 8.8 % increase from last year. May looks to be another busy month, with 6,220 sales pending at months’ end, and a look farther ahead seems to indicate more of the same in the months to come.

As you begin your home search, find out everything you need to know about buying—get the Go-To Guide for Buying a Home. It’s free and full of answers to your home buying questions.

Sellers ready to attract top dollar can download the Ultimate Guide to Selling Your Home for advice on everything from staging to TISH requirements and more from local professionals.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.3% (as of March 2021)
• Average rates for 30-year conforming mortgage 2.94%**
• 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 at just a one-month supply.
• Properties are selling for 103.4 % of their original asking price and in just over a month after hitting the market.
• While median prices are up, low interest rates offer great buying (and refinancing) opportunities.

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 April 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: 124 | -7%
• Avg. sales price: $267,201 | +25%
• Pending sales: 122 | +36%
• Days on market: 51 | -34%
• Inventory: 118 | -67%
• Months’ supply: 1.0 | -73%

Brainerd area

• New listings: 573 | -5%
• Avg. sales price: $278,176 | +29%
• Closed sales: 385 | +16%
• Days on market: 49 | -40%
• Inventory: 547 | -68%
• Months’ supply: 1.0 | -74%

Duluth area

• New listings: 443 | +14%
• Avg. sales price: $250,688 | +15%
• Closed sales: 265 | +12%
• Days on market: 66 | +3%
• Inventory: 617 | -46%
• Months’ supply: 1.7 | -54%

Southeast Minnesota area

• New listings: 726 | +22%
• Avg. sales price: $262,147 | +11%
• Closed sales: 471 | +5%
• Days on market: 37 | -42%
• Inventory: 486 | -60%
• Months’ supply: 0.8 | -65%

St. Cloud area

• New listings: 197 | +8%
• Avg. sales price: $248,534 | +17%
• Pending sales: 200 | +41%
• Days on market: 27 | -44%
• Inventory: 126 | -64%
• Months’ supply: 0.7 | -70%

Mankato area

• New listings: 223 | +10%
• Avg. sales price: $230,295 | +6%
• Pending sales: 225 | +5%
• Days on market: 98 | -25%
• Inventory: 179 | -62%
• Months’ supply: .90 | -67%

Northwestern Wisconsin area

• New listings: 632 | +7%
• Avg. sales price: $250,361 | +15%
• Closed sales: 460 | +14%
• Days on market: 109 | -19%
• Inventory: 1,584 | -34%
• Months’ supply: 2.90 | -41%

West Central Minnesota area

• New listings: 324 | +20%
• Avg. sales price: $172,249 | +8%
• Pending sales: 293 | +24%
• Days on market: 71 | -22%
• Inventory: 474 | -50%
• Months’ supply: 1.7 | -56%

Bemidji area

• New listings: 61 | -23%
• Median sales price: $225,000 | +23%
• Pending sales: 51 | -9%
• Inventory: 64 | -60%
• Months’ supply: 1.0 | -69%

Leech Lake and surrounding area

• New listings: 70 | -8%
• Median sales price: $189,900 | +3%
• Pending sales: 48 | +7%
• Days on market: 32 | -32%
• Inventory: 63 | -77%
• Months’ supply: 0.9 | -84%

Little Falls area

• New listings: 37 | +32%
• Median sales price: $229,900 | +43%
• Pending sales: 38 | +58%
• Days on market: 11 | -73%
• Inventory: 16 | -72%
• Months’ supply: 0.6 | -77%

Southwest Minnesota area

• New listings: 109 | +17%
• Median sales price: $138,750 | +10%
• Pending sales: 110 | +20%
• Days on market: 76 | -36%
• Months’ supply: 1.8 | -53%

Headwaters area

• New listings: 113 | -16%
• Median sales price: $229,000 | +27%
• Pending sales: 88 | -4%
• Days on market: 62 | -35%
• Months’ supply: 1.2 | -73%