November 2021 Market Insights

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

• New listings: 6,192 | -11.5%
• Median sales price: $340,000 | +7.9%
• Closed sales: 5,962 | -16.2%
• Pending sales: 5,745 | -10.2%
• Days on market: 27 | -22.9%
• Inventory: 7,657 | -16.2%
• Months’ supply: 1.4 | -17.6%

Median pricing, sales pace remains high as October market returns to pre-pandemic levels

The long and the short of it

• Sales have slowed and inventory has bounced back slightly, but median prices are still near record levels.
• Motivated buyers continue to drive strong pricing and quick closings, with the typical home selling in around three weeks.
• The slight shift in inventory could help relieve pricing pressure as the market transitions into autumn.

The Twin Cities real estate market slowed down considerably in October, with sales volumes returning to traditional levels. But high buyer demand continues to drive pricing upward and sales to close more quickly.

5,962 sales closed in October, down a considerable 16.2% from October 2020. That may seem like a steep decline, but it’s important to remember that last October, the market was recovering from the effects of the beginning of the COVID-19 pandemic. Last October saw a more than 30% increase in sales volume, with closed sales closer to a typical summer month. Compared to 2019, a more typical year, sales were actually up 9.3%.

Despite the gap from October, sales remain up year-over-year as well, with 2021 pacing 3.6% above a year ago.

Even if fewer homes did sell last month, sellers remained in an advantageous position. With a median price of $340,000, buyers realized 100.3% of their original list price, the ninth consecutive month that a typical home sold for higher than asking price. That median sales price is down slightly from September, but is a 7.9% increase from October 2020’s $315,000 median.

Sales also continue to close quickly after a home goes on the market. In October, the typical home was listed for just 27 days, down 22.9% from a year ago. For perspective, a home in October 2016 spent approximately 80 days on the market.

One positive for buyers over recent months had been that inventory of homes for sale was slowly increasing, but the gap between supply and demand widened a bit more in October. With 7,657 homes on the market, a 1.4-month supply, inventory is now down about 16.2% from a year ago. Although that gap is a little larger than we saw last month, it’s still more buyer-friendly than the 40% decrease in inventory we measured this spring.

It remains to be seen whether inventory will continue to shift in buyers’ favor. October saw 6,192 new homes listed for sale, which is down 11.5% from October 2020 and down about 1.5% from 2019.

Pending sales point to another dropoff in closed sales in November. 5,745 sales were waiting for a closing on Oct. 31, down 10.2% from a year ago. But as long as pricing remains this high and closings occur so quickly after listing, sellers are likely to be attracted to the market, and buyers are likely to move competitively.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.0% (as of September 2021)
• Average rates for 30-year conforming mortgage 2.98%**
• Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.

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 October 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: 86 | -9%
• Avg. sales price: $299,453 | +13%
• Pending sales: 124 | +9%
• Days on market: 28 | -50%
• Inventory: 167 | -28%
• Months’ supply: 1.50 | -29%

Brainerd area

• New listings: 470 | -1%
• Avg. sales price: $339,354 | +12%
• Closed sales: 651 | -13%
• Days on market: 32 | -42%
• Inventory: 823 | -27%
• Months’ supply: 1.70 | -23%

Lake Superior area

• New listings: 327 | -8%
• Avg. sales price: $263,294 | +3%
• Closed sales: 413 | -20%
• Days on market: 26 | -56%
• Inventory: 680 | -19%
• Months’ supply: 2.0 | -13%

Southeast Minnesota area

• New listings: 580 | -4%
• Avg. sales price: $283,866 | +10%
• Closed sales: 618 | -14%
• Days on market: 26 | -40%
• Inventory: 816 | -12%
• Months’ supply: 1.5 | -12%

St. Cloud area

• New listings: 153 | -18%
• Avg. sales price: $263,227 | +19%
• Pending sales: 153 | -15%
• Days on market: 23 | -39%
• Inventory: 207 | -26%
• Months’ supply: 1.2 | -33%

Mankato area

• New listings: 196 | +4%
• Avg. sales price: $264,038 | +12%
• Pending sales: 173 | -4%
• Days on market: 67 | -21%
• Inventory: 288 | -17%
• Months’ supply: 1.6 | -11%

Northwestern Wisconsin area

• New listings: 479 | -14%
• Avg. sales price: $260,392 | +5%
• Closed sales: 602 | -20%
• Days on market: 74 | -31%
• Inventory: 1,600 | -15%
• Months’ supply: 3.1 | -14%

West Central Minnesota area

• New listings: 264 | -9%
• Avg. sales price: $197,976 | +6%
• Pending sales: 248 | -22%
• Days on market: 42 | -45%
• Inventory: 582 | -25%
• Months’ supply: 2.1 | -30%

Bemidji area

• New listings: 56 | +17%
• Median sales price: $254,950 | +35%
• Pending sales: 70 | +9%
• Inventory: 108 | +0%
• Months’ supply: 1.8 | -5%

Leech Lake and surrounding area

• New listings: 46 | -16%
• Median sales price: $325,000 | +25%
• Pending sales: 54 | -17%
• Days on market: 21 | -13%
• Inventory: 101 | -29%
• Months’ supply: 1.8 | -22%

Little Falls area

• New listings: 27 | +29%
• Median sales price: $208,000 | +4%
• Pending sales: 25 | -19%
• Days on market: 9 | -50%
• Inventory: 31 | -9%
• Months’ supply: 1.3 | 0%

Southwest Minnesota area

• New listings: 137 | -14%
• Median sales price: $205,000 | +5%
• Pending sales: 125 | -23%
• Days on market: 30 | -27%
• Months’ supply: 1.8 | -5%

Headwaters area

• New listings: 88 | +7%
• Median sales price: $256,950 | +24%
• Pending sales: 101 | -9%
• Days on market: 34 | -51%
• Months’ supply: 2.1 | -12%