New listings increase for first time since March as more sellers enter hot market
MINNEAPOLIS (Oct. 12, 2020) – In September, closed sales spiked +22.1% over a year ago as pending sales hit a new high at +27.7% above last year. New listings increased in September for the first time in six months, a +6.6% year-over-year increase as more sellers entered Minnesota’s hot real estate market where buyers are competing with multiple offers for desirable properties. Consequently, days on the market decreased -8.9% to an average of 41 days.
“The turnaround that began in June with a rise in pending sales, has become a hot market where inventory cannot match demand,” said Chris Galler, CEO of Minnesota Realtors. “This has encouraged homeowners who were on the fence about selling a couple months ago to put their properties up for sale.”
Although sales are booming, a shortage of inventory remains an issue, especially for first-time homebuyers. The number of homes for sale is down -37% from September 2019, which amounts to less than 15,000 properties for sale across the state and a historic low for Minnesota. As a result, competition among buyers is intense. Multiple offers have pushed the percentage of original price received to +99.2%, which is +1.8% higher than September 2019.
“The median sales price shot to a historic high in September, rising to $279,900,” Galler said. “That’s nearly $30,000 more year over year. And the average sales price hit $322,085, up +10.1%. Because interest rates are so low, buyers will continue streaming into the market. Which means if you want to sell your home, you are in a great position. The challenge for buyers and their Realtor representatives is landing the right offer and closing the sale.”
Year-over-year metrics summary:
- Closed sales: +22.1% to 9,594
- Median sales price: +11.5% to $279,900
- Average sales price: +10.1% to $322,085
- New listings: +6.6% to 10,678
- Pending sales: +27.7% to 9,311
- Days on the market: -8.9% to 41 days
- Homes for sale: -37.4% to 14,630
- Months supply of inventory: -42.4% to 1.9
Closed Home Sales Across Minnesota by Region
The housing market is running hot across Minnesota this fall. Pent-up demand, low interest rates, and more sellers putting homes up for sale is fueling vigorous activity. Every single region across the state of Minnesota has experienced a year-over-year increase in closed sales. See chart for more details comparing September 2020 to September 2019.
The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. However, the official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties.
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 Edina, Minnesota, and a branch office in St. Paul, Minnesota. Find us at www.mnrealtor.com and follow us on Facebook, Instagram, Twitter and LinkedIn.