November 2020 Market Insights

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

• New listings: 6,816 | +8.4%
• Median sales price: $315,000 | +12.5%
• Closed sales: 6,674 | +22.3%
• Pending sales: 6,249 | +21.8%
• Days on market: 35 | -23.9%
• Inventory: 8,080 | -34.5%
• Months’ supply: 1.5 | -40.0%

Sales activity off the charts in October, pricing continues to push the envelope

The Twin Cities real estate market accelerated significantly in October, with sales and listing volumes rivalling what the market would typically see in mid-summer.

Closed sales ended October at 6,674, a dramatic 22.4% rise from October 2019 and enough of a jolt to put closed sales 4.5% ahead of last year’s pace, year-to-date. For perspective, that’s almost as many sales as closed in August (6,836) and more closings than in either June (6,222) or September (6,666).

At month’s end, an additional 6,249 sales were pending, a 21.8% rise from last October, and a sign that a busy November is yet to come.

Homeowners continue to list their properties for sale. The 6,816 new listings in October were 8.4% ahead of October 2019’s final tally, but listings do remain below 2019’s year-to-date pace by 1.0%.

Median sales prices continue to be under tremendous pressure. The median price of $315,000 in October was 12.5% above last October’s $280,000. That’s notable for several reasons. Interestingly, home prices in October were higher than they’ve been at any other point this year, including the traditionally busier and more competitive summer months. For example, in 2019 the market peaked at a $290,000 median in June before leveling off for the rest of the year.

The $315,000 pricing median is also notable because it represents a massive 18.9% growth over the past two years. Meanwhile, sellers are seeing their original list prices surpassed by competitive buyers, with deals coming in at an average of 100.5% of asking. Last October, sellers captured 98.1% of asking prices.

Year-to-date, sellers are getting 99.8% of their original list price, meaning two more strong months could push the market over 100% for the year. With inventory down 34.5% to 8,080, only a 1.5-month supply, the holiday season could represent a golden opportunity for sellers to seize on that trend and maximize their return on investment. Edina Realty and other Realtors have established safe practices to reduce the risk of COVID-19 exposure while selling.

As you begin your home search through virtual tours and safe showings, 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.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 5.9% (as of September 2020)
• Average rates for 30-year conforming mortgage 2.72%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

The long and the short of it

• Sellers received 100.5% of their original list price in October.
• Closed sales and new listings were both significantly higher than last year.
• 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.

Download the Ultimate Guide to Selling Your Home for tips and ideas from local professionals.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for October 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: 93 | -7%
• Avg. sales price: $270,601 | +26%
• Pending sales: 113 | +27%
• Days on market: 53 | -4%
• Inventory: 210 | -50%
• Months’ supply: 1.9 | -58%

Brainerd area

• New listings: 454 | +3%
• Avg. sales price: $308,876 | +21%
• Closed sales: 699 | +52%
• Days on market: 53 | -26%
• Inventory: 921 | -47%
• Months’ supply: 1.8 | -59%

Duluth area

• New listings: 476 | +7%
• Avg. sales price: $235,139 | +9%
• Closed sales: 503 | +43%
• Days on market: 58 | no change
• Inventory: 1,151 | -32%
• Months’ supply: 3.4 | -37%

Southeast Minnesota area

• New listings: 688 | +10%
• Avg. sales price: $235,000 | +4%
• Closed sales: 704 | +25%
• Days on market: 42 | -18%
• Inventory: 872 | -42%
• Months’ supply: 1.6 | -45%

St. Cloud area

• New listings: 181 | +24%
• Avg. sales price: $220,134 | +5%
• Pending sales: 180 | +18%
• Days on market: 37 | -29%
• Inventory: 149 | -63%
• Months’ supply: 1.6 | -41%

Northwestern Wisconsin area

• New listings: 554 | +4%
• Avg. sales price: $249,160 | +9%
• Closed sales: 756 | +29%
• Days on market: 107 | -9%
• Inventory: 1,883 | -33%
• Months’ supply: 3.6 | -36%

West Central and Southwest Minnesota area

• New listings: 282 | -8%
• Avg. sales price: $186,477 | +12%
• Pending sales: 316 | +22%
• Days on market: 77 | -7%
• Inventory: 760 | -34%
• Months’ supply: 2.9 | -43%

Bemidji area

• New listings: 48 | -2%
• Median sales price: $188,750 | +14%
• Pending sales: 64 | +52%
• Inventory: 108 | -45%
• Months’ supply: 1.9 | -47%

Leech Lake and surrounding area

• New listings: 55 | +53%
• Median sales price: $259,500 | +21%
• Pending sales: 65 | +23%
• Days on market: 24 | -64%
• Inventory: 142 | -55%
• Months’ supply: 2.3 | -63%

Little Falls area

• New listings: 21 | -36%
• Median sales price: $199,900 | +18%
• Pending sales: 31 | +72%
• Days on market: 18 |-10%
• Inventory: 34 | -55%
• Months’ supply: 1.3 | -61%