Key insights from May 2021 (compared to May 2020)*
- New listings: 7,576 | +2.6%
- Median sales price: $342,500 | +16.1%
- Closed sales: 5,543 | +15.4%
- Pending sales: 6,834 | +15.7%
- Days on market: 24 | -41.5%
- Inventory: 5,687 | -46.9%
- Months’ supply: 1.0 | -52.6%
Intense real estate market reaches more new heights in May
The Twin Cities real estate market continued to push forward at a ferocious pace in May, pushing median pricing even higher above historical levels as buyers duke it out for the best properties.
The market hit yet another new all-time high median price of $342,500 in May, an unthinkable 16.1% jump from $294,400 in May 2020, which was at that point the market’s all-time high. May marked the fourth consecutive record-shattering month in a row for median pricing, which had never pushed above $300,000 before this year.
Inventory continues to be a major force in the upward swing. With only 5,687 homes for sale in the 13-county metro area, buyers are having to move quickly to secure properties they covet. That’s pushing pricing to new highs while also shortening the time from offer to sale. The current inventory isn’t an all-time low, but it is just over half what the market saw for sale at this time last year. It’s also just a one-month supply of homes, far off the six month-supply needed for a “balanced” marketplace.
5,543 sales closed in May, a 15.4% increase over the same month a year ago. Year-to-date closings are also well ahead of 2020’s busy pace, with the 21,709 sales to date more than a 10% increase.
At month’s end, another 6,834 sales were pending, up 15.7% from May 2020 and another sign that a hectic June is ahead. Sales activity is likely to hold steady in the summer months, meaning the market will need a new swath of listings to keep up.
Some help may be on the way. May saw 7,576 new listings in total, a 2.6% jump from last year. Listings year-to-date are largely unchanged from this time in 2020, however, meaning the market will need more sellers to keep up with the rampant buyer demand.
Perhaps sellers will be enticed by the prospect of selling their homes quickly. In May, homes spent an average of just 24 days on the market before selling, another new record for the Twin Cities.
If the appeal of selling quickly doesn’t attract more sellers, perhaps selling for a premium will. Sellers received 104% of their original list price in May, another first. Receiving above listing price is becoming something of a new normal for the Twin Cities, with sellers having received better than 100% of their list price for four consecutive months and nine of the last 11 months overall.
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Economic check up
- Minneapolis-St. Paul area unemployment rate: 4.1% (as of April 2021)
- Average rates for 30-year conforming mortgage 2.96%**
- Extremely low interest rates continue to offer exceptional buying and refinancing opportunities.
The long and the short of it
- Median pricing has now pushed above $340,000, a significant new record for the Twin Cities.
- Properties are selling for 104% of their original asking price and in less than a month after hitting the market.
- The market is expected to stay busy during the summer, with an influx of new listings needed to keep up with demand.
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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 May 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: 169 | +3%
- Avg. sales price: $288,040 | +25%
- Pending sales: 112 | +17%
- Days on market: 59 | -34%
- Inventory: 106 | -69%
- Months’ supply: 0.9 | -73%
Brainerd area
- New listings: 732 | -11%
- Avg. sales price: $313,104 | +24%
- Closed sales: 482 | +6%
- Days on market: 35 | -45%
- Inventory: 660 | -63%
- Months’ supply: 1.3 | -68%
Duluth area
- New listings: 544 | -2%
- Avg. sales price: $260,564 | +27%
- Closed sales: 344 | +21%
- Days on market: 37 | -34%
- Inventory: 716 | -40%
- Months’ supply: 1.9 | -50%
Southeast Minnesota area
- New listings: 624 | -11%
- Avg. sales price: $290,432 | +19%
- Closed sales: 615 | +22%
- Days on market: 30 | -41%
- Inventory: 452 | -62%
- Months’ supply: 0.8 | -65%
St. Cloud area
- New listings: 225 | +10%
- Avg. sales price: $259,726 | +19%
- Pending sales: 205 | +15%
- Days on market: 20 | -51%
- Inventory: 148 | -57%
- Months’ supply: 0.9 | -61%
Mankato area
- New listings: 239 | -11%
- Avg. sales price: $245,201 | +5%
- Pending sales: 198 | -22%
- Days on market: 71 | -41%
- Inventory: 197 | -58%
- Months’ supply: 1.0 | -63%
Northwestern Wisconsin area
- New listings: 583 | -9%
- Avg. sales price: $237,479 | +24%
- Closed sales: 375 | +9%
- Days on market: 114 | -16%
- Inventory: 1,389 | -40%
- Months’ supply: 2.6 | -45%
West Central Minnesota area
- New listings: 348 | -1%
- Avg. sales price: $193,606 | +11%
- Pending sales: 318 | +2%
- Days on market: 291 | +210%
- Inventory: 489 | -48%
- Months’ supply: 1.7 | -56%
Bemidji area
- New listings: 141 | +70%
- Median sales price: $232,828 | +15%
- Pending sales: 83 | -11%
- Inventory: 119 | -18%
- Months’ supply: 2.0 | -29%
Leech Lake and surrounding area
- New listings: 102 | -18%
- Median sales price: $243,700 | -9%
- Pending sales: 74 | -1%
- Days on market: 5 | -89%
- Inventory: 80 | -74%
- Months’ supply: 1.2 | -81%
Little Falls area
- New listings: 38 | -21%
- Median sales price: $160,000 | -3%
- Pending sales: 25 | -38%
- Days on market: 9 | -50%
- Inventory: 27 | -55%
- Months’ supply: 1.0 | -63%
Southwest Minnesota area
- New listings: 131 | -13%
- Median sales price: $146,000 | -9%
- Pending sales: 110 | +21%
- Days on market: 76 | -19%
- Months’ supply: 1.9 | -53%
Headwaters area
- New listings: 220 | +24%
- Median sales price: $229,950 | +11%
- Pending sales: 92 | +7%
- Days on market: 40 | -35%
- Months’ supply: 1.8 | -63%
