“Slow and steady” best describes movement in the Twin Cities housing market this summer. MLS* data crunching reveals gradual increases over the past year in median sale prices for single-family homes, condos and townhouses across the metro, with very little change in inventory. The difference in the number of new listings this June, though higher than last, was barely detectable. From June 2018 to June 2019, new listings for all home types went up by a mere 1.5% across the 16-county Twin Cities Region, 6% in Minneapolis, and actually decreased by .5% in St. Paul. When considering supply and demand, it’s still a seller’s market.
New Home Listings | 3-Year Trend
Prices Going Up
The overall trend in median sale prices reveals a steady rise, also good for sellers. From June to June, the median increase for most home types was in the 6-7% range. An exception was the Minneapolis condo market which experienced a double-digit boost (17.5%) for newly-built MLS-listed units. St. Paul’s single-family homes and condos/townhouses increased at the next highest rates (7.3% and 7% respectively). Minneapolis single-family prices went up 6.3% just ahead of the Twin Cities Region’s overall 6.1% jump.
In June 2019 the median price of single-family homes in St. Paul was $219,000, up from $205,000 the year before. During the same period, Minneapolis single families increased from $253,950 to $270,000 while the Twin Cities Region’s median values for similar properties rose from $277,000 to $294,000.
Those looking to buy may have been challenged finding the right fit this spring & summer but activity seems to have slowed around the July 4th holiday giving serious buyers some room to breathe. Current mortgage interest rates are an added incentive this season. Locking in low can keep payments down or open up options to buy higher in a market with a less-than-healthy supply.
Median Sale Prices | Single Family Homes
What’s a “Single-Family” home?
A stand-alone home designed to accommodate one family. In comparison, “multi-family” homes like duplexes and triplexes are built and zoned for more than one family.
Low Inventory
Despite having slightly more homes to chose from, some buyers are still struggling to find the right fit. The region’s early summer supply of 2.4 months is well below the 5-6 months needed for a balanced market, and home shoppers can feel the scarcity. It’s especially noticeable with on-trend, move-in-ready homes in the most sought-after cities and neighborhoods. Minneapolis and St. Paul supply levels, though up a tad bit from last year, remain frustratingly low for people wanting to find the right home for the right price in their favorite neighborhoods. June 2019 data reveal a meager 1.7 months supply of single-family homes for sale in both Minneapolis and St. Paul. Condos and townhouses are more readily available but not by much (months supply hovering around 2.5.)
Late spring was especially competitive with multiple buyers offering (and often losing) bids in the tens of thousands over list price for a single property. Activity seemed to have slowed a bit early June, however. Maybe the heat rolling in, school ending, kids graduating or families gearing up for summer trips cooled the jets? Despite summer distractions, buyers are still out there looking to get settled before school starts, the snow flies, interest rates creep up, rents rise, leases expire, etc.
When to Sell?
If you’re a home owner thinking about selling, warm-weather months are still your best bet in Minnesota. Most people prefer not to move in snow and cold, during holiday seasons, or mid school year if they can avoid it. Once November hits be prepared for a longer time on market as home shopper traffic slows. And if winter weather cuts into fall a slow-down could happen even sooner.
Of course the best time to sell is when you’re ready. In the mean time learn the market, make a plan and get professional help when needed. Despite having fewer choices, buyers are still choosy and will expect to pay less for homes in need of updates or TLC. It’s helpful to know what they’re looking for. Also beware that real estate markets can be hyper-local. What’s true in one neighborhood, or even block, might not be true in the next. If you want help zeroing in on your market, talking through possible updates or learning the selling and buying process, please connect! I’m happy to assist.
Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.
*All data derived from the Northstar MLS database, the primary listing service used by real estate agents and brokers throughout the Twin Cities and parts of greater Minnesota.