May 2022 Market Insights

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

• New listings: 7,046 | -7.0%
• Median sales price: $370,000 | +10.0%
• Closed sales: 4,706 | -9.0%
• Pending sales: 5,693 | -9.2%
• Days on market: 28 | -9.7%
• Inventory: 5,758 | -9.2%
• Months’ supply: 1.1 | no change

Sales pricing pushes higher in April, setting the stage for a busy summer

The long and the short of it

• Median pricing set a new record, with the average home selling for $370,000.
• The inventory of homes for sale crept a little closer to 2021 levels, within 10 percent of a year ago.
• Sellers continue to hold an advantage, with no influx of inventory expected in the near future.

April brought the beginning of what could be a red-hot home sales market in the Twin Cities this summer, setting a new record median sales price in the process.

The median home sold for an amazing $370,000 in April, a 10% increase over a year ago and $16,000 higher than March’s recorded $354,000, which itself was a record. The median sales price has now pushed higher in each of the four months of 2022 recorded to date. Sellers are also receiving an average of 103.8% of their original asking price, just shy of last summer’s record of 104.1%.

As has become a common theme, one factor pushing prices higher is a shortage of homes for sale. At the end of April, only 5,758 properties were available in the 13-county metro area, down 9.2% from April 2021. That represents about a 1.1-month supply of homes for sale.

While those numbers are nowhere near what experts would consider a balanced market, they do offer a slight glimmer of hope for would-be buyers: This is the highest supply of homes for sale we’ve seen since November.

7,046 new properties hit the market for sale in April, a 7.0% decrease from April 2021 but up about 15% over April 2020. April saw a total of 4,706 closed sales, down 9.0% from April 2021.

When new houses do hit the market, they’re selling quickly and for competitive prices. The typical home spent four weeks on the market in April, down 3 days (or 9.7%) from April 2021.

Looking forward, it’s likely that competition from buyers and low inventory of homes for sale will continue to push pricing higher and closing times even shorter. There were 5,693 sales pending at the end of April, down 9.2% from last year but up nearly a quarter over the year before, signaling another busy month of closings to come.

With interest rates also continuing to push higher, some buyers may opt to make a move sooner than later.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.5% (as of March 2022)
• Average rates for 30-year conforming mortgage 5.3%**
• 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 April 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: 131 | +6%
• Avg. sales price: $303,432 | +14%
• Pending sales: 105 | -14%
• Days on market: 21 | -59%
• Inventory: 116 | -2%
• Months’ supply: 1.2 | +20%

Brainerd area

• New listings: 587 | +2%
• Avg. sales price: $312,285 | +12%
• Closed sales: 307 | -20%
• Days on market: 35 | -29%
• Inventory: 585 | +7%
• Months’ supply: 1.3 | +30%

Lake Superior area

• New listings: 381 | -14%
• Avg. sales price: $268,775 | +7%
• Closed sales: 227 | -14%
• Days on market: 26 | -61%
• Inventory: 485| -21%
• Months’ supply: 1.5 | -12%

Southeast Minnesota area

• New listings: 609 | -16%
• Avg. sales price: $314,952 | +20%
• Closed sales: 445 | -6%
• Days on market: 31 | -16%
• Inventory: 441 | -9%
• Months’ supply: 0.9 | +13%

St. Cloud area

• New listings: 201 | +2%
• Avg. sales price: $254,135 | +2%
• Pending sales: 174 | -13%
• Days on market: 21 | -22%
• Inventory: 136 | +8%
• Months’ supply: 0.9 | +29%

Mankato area

• New listings: 239 | +7%
• Avg. sales price: $285,449 | +24%
• Pending sales: 208 | -8%
• Days on market: 81 | -17%
• Inventory: 173 | -3%
• Months’ supply: 1.0 | +11%

Northwestern Wisconsin area

• New listings: 602 | -5%
• Avg. sales price: $284,467 | +14%
• Closed sales: 363 | -21%
• Days on market: 90 | -17%
• Inventory: 1,237 | -22%
• Months’ supply: 2.4 | -17%

West Central Minnesota area

• New listings: 252 | -22%
• Avg. sales price: $207,155 | +20%
• Pending sales: 210 | -28%
• Days on market: 52 | -27%
• Inventory: 278 | -41%
• Months’ supply: 1.5 | -12%

Bemidji area

• New listings: 57 | -7%
• Median sales price: $239,900 | +7%
• Pending sales: 49 | -4%
• Inventory: 80 | +25%
• Months’ supply: 1.4 | +40%

Leech Lake and surrounding area

• New listings: 56 | -20%
• Median sales price: $286,250 | +51%
• Pending sales: 41 | -15%
• Days on market: 6 | -81%
• Inventory: 60 | -5%
• Months’ supply: 1.1 | +22%

Little Falls area

• New listings: 30 | -19%
• Median sales price: $220,000 | -4%
• Pending sales: 21 | -45%
• Days on market: 10 | -9%
• Inventory: 21 | -45%
• Months’ supply: 0.9 | +50%

Southwest Minnesota area

• New listings: 138 | +27%
• Median sales price: $154,500 | +11%
• Pending sales: 113 | +3%
• Days on market: 61 | -20%
• Months’ supply: 1.7 | -6%

Headwaters area

• New listings: 118 | +4%
• Median sales price: $237,500 | +4%
• Pending sales: 88 | na
• Days on market: 38 | -39%
• Months’ supply: 1.6 | +33%