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November Closed Sales Continue Record Pace

By MNR News posted 12-10-2020 01:08 PM

  

Winter Market Looks Like Spring: November Closed Sales Continue Record Pace

Pending sales rise double digits for the sixth consecutive month

m n r logoMINNEAPOLIS (Dec. 10, 2020) – In November, closed home sales were up +15.8% versus year ago, with 7,898 total real estate transactions taking place across the state. Pending sales demonstrated unseasonably strong growth, climbing +10.6% higher than November 2019. In a sign of continuing high demand, properties spent an average of 38 days on the market, which is 13 fewer days than at this time last year. While buyers aggressively chased scarce inventory, the median sales price went up +13.6% year-over-year to $284,000.

“Even with the holidays approaching, buyers were still out in force trying to find a new home,” said Chris Galler, CEO of Minnesota Realtors. “They’re motivated by low interest rates and a strong desire for more space.”

Finding the right home was more challenging than ever in this high-demand market, with only 5,523 new listings coming on the market in November, which is an increase of +1.1% over last year.  Buyers raced to purchase affordable homes, often competing for desirable inventory with multiple offers. The total number of homes for sale decreased -42.3% with 8,082 fewer homes on the market.

“With all the unusual late-season activity, median home prices were still historically high,” Galler said. “As Thanksgiving approached, Realtors were grateful for the unprecedented pace of business, but hard pressed to match clients with the right home at an affordable price. As we look toward a new year, we can be hopeful that new listings will increase in the spring, relieving some market pressure.”

November year-over-year summary:

  • Closed sales: +15.8% to 7,898
  • Median sales price: +13.6% to $284,00
  • Average sales price: +14.4% to $328,158
  • New listings: +1.1% to 5,523
  • Pending sales: +10.6% to 6,284
  • Days on the market: -25.5% to 38 days
  • Homes for sale: -42.3% to 11,013
  • Months supply of inventory: -48.1% to 1.4 

Closed Home Sales Across Minnesota by Region

Although a nearly 16% year-over-year increase in closed sales was lower than the near 30% increase we saw in October, seven regions across the state still marked double digit increases in closed home sales year-over-year, with the West Central region topping the chart with a near 40% increase. Only three regions were down, with the Upper Minnesota Valley area dropping -11.8% compared to last year. See chart below for more details comparing November 2020 to November 2019.

year over year change chart

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. 

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