Welcome to 2020, Minneapolis! The year ended on a mostly positive note, as November featured a mixed bag of results. Namely, new listings were up 0.1% year-to-date but down slightly in November. Helping to offset the decline was a 25% gain in newly built homes from last November. Despite it being a sellers’ market, and depending on price point, sellers still face the twin challenges of securing the next property while listing their current home.
Closed sales were also down slightly, but year-to-date closings are almost even with 2018. Sales rose for the previous four consecutive months. Also, pending sales have now risen for five consecutive months, including November. This data points to solid demand heading into the new year. Despite tight inventory, surprisingly low borrowing rates are help support this demand.
The number of homes for sale declined overall, but most price ranges have shown some growth this year. Over the last 12 months, housing inventory levels have increased for homes priced between $200K-$300K, $300K-$500K and over $500K, but fell for homes under $200K. The first- time buyer segment still hasn’t seen supply growth.
The median home price in the Twin Cities area has risen for 93 months or nearly 8 years, reaching new record highs every year since 2016, which is not the case for every market segment or area. The supply-demand imbalance pushes prices higher along with a changing mix of homes selling. There’s been growth in luxury activity and in square footage. Market times remain brisk and near record lows, but there were a few monthly increases in 2019. Homes priced under $250K sold in a median of 25 days, while that figure was 91 days for homes over $1M.
By the numbers, compared to one year ago:
- New listings decreased 1.3% to 3,970
- Inventory decreased 9.2% to 10,011 units
- Median sales price increased 5.6% to $279,900
- Days on market declined 1.9% to 51
- Percent of original list price received decreased 0.2% to 99.6%
- Supply of homes for sale for the month declined 9.1% to 2.0 months
Contact us today to see how we can help you achieve your real estate goals in 2020.
At Helgeson Platzke Real Estate Group, we are proud to be a member of Eden Prairie’s esteemed small business community. Since 1995, we’ve offered the very best in Twin Cities real estate, earning our community’s trust as the #1 Sales Team in the Eden Prairie area. With over 4,500 homes sold, our staff has both the knowledge and experience necessary to ensure that your homeownership goals are delivered. If you’re considering buying or selling your Eden Prairie area home this year, now is the time to enlist the help of a real estate professional who can help you make the most of the market no matter the situation.