December is normally one of the slowest months of the year, but strong buyer demand across most segments of the market, buoyed by near record-low interest rates, continues to drive a healthy sales pace in the face of a new wave of COVID-19 infections and a softening job market.
Despite the headwinds, 2020 was a record-breaking year for housing
(January 26, 2021) – According to the 2020 annual report from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, both buyer and seller activity in the 16-county Twin Cities metro last year outpaced 2019 levels. After a brief pullback following the onset of the pandemic—and aided by remote work, distance learning, historically low rates and a desire for more space—market activity recovered quickly and ended the year posting several new records across various metrics.
Seller activity rose a modest 0.1 percent from 2019 while closed sales were up 7.7 percent. That marks the highest sales figure since at least 2003 and the highest new listings count since 2016. Listing activity was constrained due to health concerns, remodeling activity, a lack of options and homeowners staying in their homes longer.
“Predictably, the result of record sales combined with ultra-low inventory meant rising prices and sellers accepting stronger offers in less time,” according to Tracy Baglio, President of the Saint Paul Area Association of REALTORS®.
Governor Walz’s shelter-in-place order paused market activity in April and May, which created pent-up demand that pushed the spring market into summer and the summer market into fall. Buyers were still more eager to purchase than sellers were to list, meaning multiple offers remained commonplace—particularly at the more affordable price points where the inventory shortage is even more pronounced.
“Despite several challenges, the Twin Cities housing market exceeded all expectations,” said Todd Walker, President of Minneapolis Area REALTORS®. “Inventory remained a hurdle, but homeowners have never had so much equity in their homes and buyers haven’t seen rates this low in 50 years, offsetting rising prices.”
The median sales price rose 8.9 percent to $305,000, a record high. On average, sellers obtained 99.8 percent of their list price—the highest since at least 2003. Homes sold quickly. Half the sales had accepted offers in under 18 days. Importantly, all areas, price points and property types are unique.
Signed contracts rose 10.0 percent in Minneapolis and 16.4 percent in St. Paul, suggesting core cities remain attractive. With prices slightly lower, market times higher and offers weaker, the condo market continues to lag other segments. Aided by favorable jumbo rates and a recovered stock market, sales of luxury properties ($1M+) have been soaring higher—up 25.4 percent from 2019.
One thing is clear: the housing market continues to outperform, despite several headwinds.
2020 by the numbers (compared to 2019)
• Sellers listed 76,348 properties on the market, a 0.1 percent increase from 2019
• Buyers closed on 64,479 properties, up 7.7 percent (65,770 pending sales, up 9.7 percent)
• The Median Sales Price rose 8.9 percent to $305,000
• Inventory levels fell 39.3 percent to 5,080 units
• Months Supply of Inventory was down 47.1 percent to 0.9 months (5-6 months is balanced)
• Days on Market decreased 12.2 percent to 43 days, on average (median of 18, down 21.7 percent)
• Changes in Sales activity varied by market segment
- Single family sales were up 10.8 percent; condo sales fell 10.6 percent; townhome sales increased 3.4 percent
- Traditional sales rose 8.4 percent; foreclosure sales were down 20.9 percent; short sales fell 25.9 percent
- Previously owned sales were up 7.3 percent; new construction sales climbed 14.1 percent
Weekly Market Report
For Week Ending January 16, 2021
Mortgage giant Freddie Mac reported this week that rates on a 30-year fixed-rate mortgage averaged 2.79% with .7 points. That is up slightly from the record lows seen last week, but almost one percent lower than the same week a year ago. Rates are expected to increase slightly this year, with the National Association of REALTORS® expecting rates to average 3.1 percent in 2021, and the Mortgage Bankers Association estimating an average of 3.3 percent.
In the Twin Cities region, for the week ending January 16:
- New Listings increased 0.8% to 929
- Pending Sales increased 7.4% to 815
- Inventory decreased 40.2% to 5,125
For the month of December:
- Median Sales Price increased 10.0% to $307,000
- Days on Market decreased 30.4% to 39
- Percent of Original List Price Received increased 2.5% to 99.7%
- Months Supply of Homes For Sale decreased 41.2% to 1.0
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending January 9, 2021
The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey reported that 5.53% of mortgage loans remained in forbearance as of December 27, 2020. While the forbearance rate is down significantly from its highest levels in 2020, the MBA estimates the current rate represents 2.7 million homeowners currently in forbearance plans.
In the Twin Cities region, for the week ending January 9:
- New Listings decreased 8.3% to 927
- Pending Sales increased 1.3% to 636
- Inventory decreased 39.8% to 5,098
For the month of December:
- Median Sales Price increased 10.0% to $307,000
- Days on Market decreased 30.4% to 39
- Percent of Original List Price Received increased 2.5% to 99.7%
- Months Supply of Homes For Sale decreased 47.1% to 0.9
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending January 2, 2021
The New Year has begun and with it, many buyers and sellers have a change of housing in their new year resolutions. While ongoing unemployment claims are still elevated, it is less than one quarter of what it was at its high during the early days of the pandemic. With interest rates remaining near record lows, the stock market near record highs, and inventory of homes available still constrained in most segments of the market, the year is setting up to be another filled with strong demand and limited supply.
In the Twin Cities region, for the week ending January 2:
- New Listings decreased 25.8% to 519
- Pending Sales increased 17.0% to 653
- Inventory decreased 38.1% to 5,511
For the month of November:
- Median Sales Price increased 10.7% to $310,000
- Days on Market decreased 33.3% to 34
- Percent of Original List Price Received increased 2.8% to 100.2%
- Months Supply of Homes For Sale decreased 40.9% to 1.3
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending December 26, 2020
As we near the end of the year, overall real estate activity slows as many buyers and sellers briefly turn their focus from real estate to the holidays, family, and friends. With mortgage rates closing the year at near record lows, and almost one percent lower than a year ago, home purchase mortgage loan application volume remains high and continues to signal strong buyer demand going into the new year.
In the Twin Cities region, for the week ending December 26:
- New Listings increased 22.0% to 338
- Pending Sales increased 17.0% to 593
- Inventory decreased 37.9% to 5,777
For the month of November:
- Median Sales Price increased 10.7% to $310,000
- Days on Market decreased 33.3% to 34
- Percent of Original List Price Received increased 2.8% to 100.2%
- Months Supply of Homes For Sale decreased 40.9% to 1.3
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending December 19, 2020
According to research by realtor.com®, all-cash home purchases make up about 36% of the market, which is up only slightly from last year. While the middle-price tiers saw about the same percentage of all-cash sales as last year, the low end of the market (under $200,000) and the very top of the market (over $1 million) saw higher shares of cash sales this year than last.
In the Twin Cities region, for the week ending December 19:
- New Listings increased 28.1% to 693
- Pending Sales increased 24.4% to 923
- Inventory decreased 37.0% to 6,137
For the month of November:
- Median Sales Price increased 10.7% to $310,000
- Days on Market decreased 33.3% to 34
- Percent of Original List Price Received increased 2.8% to 100.2%
- Months Supply of Homes For Sale decreased 38.1% to 1.3
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
November Monthly Skinny Video
Showing activity remains higher than the same period a year ago across most of the country, suggesting that strong buyer demand is likely to continue into what is typically the slowest time of year.
Weekly Market Report
For Week Ending December 12, 2020
The National Association of Home Builders reports that lumber prices are rising again. After hitting an all-time high of near $950 per thousand board feet in September, prices slid to near $550 per thousand board feet in October but are now above $650 per thousand board feet in December. High lumber prices have contributed to significant price increases in most new construction homes this year and increases the costs of remodeling as well. A tariff reduction expected this month may help soften lumber costs in the coming weeks.
In the Twin Cities region, for the week ending December 12:
- New Listings increased 23.6% to 870
- Pending Sales increased 10.0% to 838
- Inventory decreased 36.5% to 6,421
For the month of November:
- Median Sales Price increased 10.7% to $310,000
- Days on Market decreased 33.3% to 34
- Percent of Original List Price Received increased 2.8% to 100.2%
- Months Supply of Homes For Sale decreased 38.1% to 1.3
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Despite pandemic, this year is on-track for record-breaking sales
New listings flat, sales up, price growth strong, market times fast, but supply levels extremely low
(December 17, 2020) – According to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the growth in buyer and seller activity in the 16-county Twin Cities metro continues to climb above 2019 levels. Seller activity rose 1.3 percent from last November while new purchase agreements were up 13.4 percent over last year. That marks the strongest November pending sales figure since 2004 and the highest closed sales since at least 2003.
This year, the fall and winter markets are behaving more like a spring market since activity was delayed from the spring and summer months. While sellers only listed slightly more units than last November, pending and closed sales were up significantly. Pending sales often act as a leading indicator of future demand while closings lag.“The Twin Cities housing market continues to exceed expectations,” according to Patrick Ruble, President of the Saint Paul Area Association of REALTORS®. “Despite record sales figures, the lack of adequate supply—particularly affordable units—continues to frustrate buyers.”
Historically low mortgage rates, shifting work and learning patterns, health concerns and other factors are driving this sellers’ market. While all areas and price points are unique, sellers are getting strong offers early on. On average, sellers obtained 100.2 percent of their original list price—the highest November figure since at least 2003. At a median of 15 days, homes went under contract in record time, and 48.3 percent faster than last November.
“It’s truly impressive that sales would reach new highs during a pandemic and an otherwise challenging year,” said Linda Rogers, President of Minneapolis Area REALTORS®. “That’s of course meant rising home prices, but luckily, ultra-low interest rates have been able to partly offset that.”
Sales were up 21.5 percent in Minneapolis and 30.8 percent in St. Paul, suggesting buyers are eager to quickly snap up any new listings. And the competitive landscape means those buyers are often going above list price. With prices slightly lower, market times higher and offers weaker, the condo market continues to lag other segments. However, sales of luxury properties ($1M+) have been soaring higher—up nearly 20.0 percent YTD. One thing is clear: the housing market continues to outperform, despite the many economic headwinds.
November 2020 by the numbers compared to a year ago
- Sellers listed 4,035 properties on the market, a 1.3 percent increase from last November
- Buyers signed 4,640 purchase agreements, up 13.4 percent (5,624 closed sales, up 18.6 percent)
- Inventory levels fell 37.9 percent to 6,642 units
- Months Supply of Inventory was down 42.9 percent to2 months (5-6 months is balanced)
- The Median Sales Price rose 10.7 percent to $310,000
- Days on Market decreased 33.3 percent to 34 days, on average (median of 15, down 48.3 percent)
- Changes in Sales activity varied by market segment
- Single family sales were up 21.3 percent; condo sales fell 2.6 percent; townhome sales increased 20.6 percent
- Traditional sales rose 19.7 percent; foreclosure sales were down 22.9 percent; short sales fell 18.8 percent
- Previously owned sales were up 21.7 percent; new construction sales climbed 4.8 percent