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Pending sales and new listings are up in robust fall market

MINNEAPOLIS (Nov. 24, 2020) – In October, closed sales surged to 10,290 homes sold, which is a +29.8% increase versus a year ago. Pending sales also showed strong growth, up +22.4% over last October as consumers purchased properties at rates typically seen in the spring. The unusually strong fall housing market is straining housing inventory in most regions of the state. Motivated by low interest rates and a desire for more space, consumers are competing for scarce stock and driving up prices.

“In 2020, fall is the new spring in terms of market activity,” said Chris Galler, CEO of Minnesota Realtors.

New listings notched up +6.1% versus a year ago, with 9,346 units coming on the market. But the modest growth could not meet demand fueled by low interest rates ranging from 2.5% to 3.0%. Home inventory was down 38.1% to 13,550 homes available for sale, which is 8,340 less homes for sale this year versus last year. Days on the market, a reflection of how long it takes to sell a home listed for sale, was only 39 days in October, down -18.8% from a year ago.

Affordable interest rates coupled with unprecedented demand drove prices up in October as the median home price reached $285,000, +14% more than a year ago. Multiple offers for inventory continued pushing home sale prices up. The average home sale price increased +15.6% versus a year ago to $334,562.

“In October we hit the highest median home price since records have been kept in Minnesota,” Galler said. “Homebuyers and their Realtors are struggling to find homes for sale and competition is driving up the prices to record levels. Years of under production and high regulatory costs have made it hard for low- and middle-income families to take advantage of this unique marketplace.”

Galler adds that the impact of the pandemic should not be underestimated. “COVID-19 has reshaped the housing market. Space inside and outside the home to work, educate, exercise and entertain are all significant considerations for home buyers. Homebuyers want more space for these priorities, and they are willing to pay for it,” Galler said.

October year-over-year summary: 

• Closed sales: +29.8% to 10,290
• Median sales price: +14.0% to $285,00
• Average sales price: +15.6% to $334,562
• New listings: +6.1% to 9,346
• Pending sales: +22.4% to 8,889
• Days on the market: -18.8% to 39 days
• Homes for sale: -38.1% to 13,550
• Months supply of inventory: -41.9% to 1.8

Closed Home Sales Across Minnesota by Region

With the exception of Northwest and the Upper Minnesota Valley, every region of Minnesota saw double-digit increases in year-over-year closed sales. See chart below for more details comparing October 2020 to October 2019.

The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, which is what MAR & SPAAR local associations report on.

View full regional and county report here.

View statewide report here.

About Minnesota Realtors^®
Minnesota Realtors^® (MNR) is the membership organization supporting all 21,000 Realtors^® in the state of Minnesota. MNR is dedicated to helping Realtors^® succeed in providing comprehensive and informed guidance to their customers seeking to buy or sell a home. MNR provides Realtors^® with a code of ethics, continuing education, real estate transaction forms, legal services and dispute resolution, as well as lobbying and advocating for homeownership rights and the real estate industry. MNR works in partnership with the National Association of Realtors, as well as more than 15 affiliate regional associations within Minnesota. MNR is a non-profit organization founded in 1919, with headquarters in Minnetonka, Minnesota, and a branch office in St. Paul, Minnesota. Find us at www.mnrealtor.com and follow us on Facebook, Instagram, Twitter and LinkedIn.