Key insights from July 2021 (compared to July 2020)*
- New listings: 8,139 | +0.7%
- Median sales price: $350,000 | +11.9%
- Closed sales: 6,695 | -5.2%
- Pending sales: 6,202 | -11.3%
- Days on market: 19 | -53.7%
- Inventory: 7,590 | -25.3%
- Months’ supply: 1.3 | -35.0%
July sales activity slows down as market begins gradual march toward balance
The Twin Cities real estate market remained busy in July, but activity was down slightly as underlying fundamentals began to shift in favor of a balanced buyer-seller equation.
The market’s median price was $350,000 for a second consecutive month in July, matching June’s record pricing. The mark is an 11.9% jump from last summer’s active market, a sign of the unrelenting buyer competition in search of homes.
Buyers are not only bringing competitive bids to the table – they’re looking to close quickly. July saw a new record low of just 19 days on the market for an average home, down a day from June’s mark and less than half the time homes were taking to sell in July 2020. When the current trend toward quicker sales began in early 2012, homes were taking closer to four to five months to sell.
Sellers aren’t making any sacrifices to get their homes off the market quickly, either. In July, sellers recouped 103.6% of their original list price, up 3.5% from July 2020. Sellers have consistently gotten their full original list price dating back to early 2020.
Despite the record pricing and faster closings, the market is starting to show some signs of shifting toward balance. The inventory of homes for sale, one of the most significant indicators of a tight market, bounced back to 7,590 by the end of July. That number is down 25.3% from the available inventory in July 2020, still a significant drop, but this is the first time that inventory has been within 26% of the previous year’s levels since September 2020. There is now about a 1.3-month supply of homes available for sale, the highest we’ve seen since last November.
6,695 closings were recorded in July, down 5.2% from the same month in 2020. That’s the first time all year that closings declined year-over-year, a positive sign for buyers who are waiting for the market to shift in their favor.
But that doesn’t mean the market has slowed down completely. The Twin Cities market has now seen 36,091 closings year-to-date, which is up 9.5% from 2020 at the same point. Whether the market will continue to outpace 2020 remains to be seen.
One sign that August could be a bit slower than in 2020: Pending sales were down in July. There were 6,202 pending sales at month’s end, down 11.3% from the same period last year. We’ve now seen two consecutive months of pending sales in decline.
With sales still moving quickly and at attractive prices, sellers continue to bring their homes to market. There were 8,139 new listings in July, a slight increase over the same period last year. We’ve now seen 47,446 homes listed year-to-date, up 2.3% from last year.
As long as pricing remains this high and closings occur so soon after listing, sellers will continue to enjoy this sales atmosphere. Whether enough homes will be put up for sale to help balance the market, that’s an entirely different question.
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Economic check up
- Minneapolis-St. Paul area unemployment rate: 4.5% (as of June 2021)
- Average rates for 30-year conforming mortgage 2.87%**
- Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.
The long and the short of it
- Median pricing has remained at the record $350,000 for a second consecutive month.
- Properties are selling within 19 days of hitting the market, a record.
- Inventory remains low from a historical perspective, but has continued its slow climb upward.
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.
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*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for July 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: 183 | -1%
- Avg. sales price: $268,471 | +2%
- Pending sales: 147 | -21%
- Days on market: 23 | -51%
- Inventory: 212 | -33%
- Months’ supply: 1.9 | -37%
Brainerd area
- New listings: 774 | +2%
- Avg. sales price: $291,698 | +5%
- Closed sales: 573 | -30%
- Days on market: 23 | -67%
- Inventory: 959 | -37%
- Months’ supply: 1.9 | -41%
Duluth area
- New listings: 514 | -15%
- Avg. sales price: $258,697 | +17%
- Closed sales: 458 | -15%
- Days on market: 22 | -52%
- Inventory: 874 | -23%
- Months’ supply: 2.5 | -26%
Southeast Minnesota area
- New listings: 750 | +6%
- Avg. sales price: $289,207 | +17%
- Closed sales: 615 | -22%
- Days on market: 21 | -56%
- Inventory: 711 | -33%
- Months’ supply: 1.3 | -35%
St. Cloud area
- New listings: 242 | +17%
- Avg. sales price: $248,948 | +11%
- Pending sales: 219 | -6%
- Days on market: 16 | -61%
- Inventory: 209 | -29%
- Months’ supply: 1.2 | -40%
Northwestern Wisconsin area
- New listings: 794 | +2%
- Avg. sales price: $266,224 | +12%
- Closed sales: 674 | -13%
- Days on market: 78 | -30%
- Inventory: 1,842 | -28%
- Months’ supply: 3.4 | -28%
West Central Minnesota area
- New listings: 375 | +1%
- Avg. sales price: $190,313 | +12%
- Pending sales: 333 | +1%
- Days on market: 48 | -31%
- Inventory: 554 | -42%
- Months’ supply: 2 | -47%
Bemidji area
- New listings: 83 | +0%
- Median sales price: $234,500 | +26%
- Pending sales: 76 | +1%
- Inventory: 132 | -6%
- Months’ supply: 2.2 | -19%
Leech Lake and surrounding area
- New listings: 103 | +36%
- Median sales price: $263,000 | +10%
- Pending sales: 74 | -35%
- Days on market: 7 | -86%
- Inventory: 107 | -49%
- Months’ supply: 1.7 | -54%
Little Falls area
- New listings: 36 | -5%
- Median sales price: $236,500 | +40%
- Pending sales: 26 | -35%
- Days on market: 11 | -50%
- Inventory: 29 | -46%
- Months’ supply: 1.2 | -48%
Southwest Minnesota area
- New listings: 139 | +12%
- Median sales price: $150,000 | +25%
- Pending sales: 119 | -2%
- Days on market: 60 | -19%
- Months’ supply: 2.2 | -44%
Headwaters area
- New listings: 148 | +7%
- Median sales price: $235,200 | +13%
- Pending sales: 147 | -12%
- Days on market: 32 | -51%
- Months’ supply: 2.2 | -41%
