While the effects of COVID-19 in the broader economy continue, real estate activity is beginning to recover across much of the country. According to Freddie Mac,mortgage rates have been below 3.3 percent for more than four weeks and are hovering near all-time lows, spurring strong interest by buyers and lifting showing activity up 4% nationally versus a year ago in the final week of May.
New Listings in the Twin Cities region decreased 24.1 percent to 7,199. Pending Sales were down 13.9 percent to 5,828. Inventory levels fell 20.3 percent to 9,744 units.
Prices continued to gain traction. The Median Sales Price increased 3.5 percent to $294,900. Days on Market was down 8.9 percent to 41 days. Sellers were encouraged as Months Supply of Homes for Sale was down 20.0 percent to 2.0 months.
Buyers have been quicker to return to the housing market in force than sellers, who have been showing a bit more reluctance to list their homes than is typical for this time of year. But trends are improving and as states and localities continue to moderate their COVID-19 policies, real estate activity is expected to continue to improve in the coming weeks.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®