September 2021
Pending home sales in the Twin Cities were down compared to last September, but
up compared to September 2019. Comparisons to the intensely competitive 2020
market can appear skewed and really aren’t apples-to-apples. Home prices continue
to rise, and that trend is unlikely to change until we approach 5 or 6 months of supply.
Affordability concerns still linger but record low mortgage rates have kept monthly
payments in check. Some homebuyers are feeling frustrated and burned out, are
“waiting and seeing” or feel priced out altogether.
New Listings in the Twin Cities region decreased 8.6 percent to 7,238. Pending Sales
were down 14.4 percent to 5,590. Inventory levels fell 15.6 percent to 8,306 units.
Prices continued to gain traction. The Median Sales Price increased 10.2 percent to
$341,750. Days on Market was down 37.8 percent to 23 days. Sellers were
encouraged as Months Supply of Homes for Sale was down 21.1 percent to 1.5
months.
There are signs the market may be shifting, however. New listings have continued to
hit the market, bucking seasonality trends commonly seen in the fall, a time when
listing and sales activity typically slows as children return to school. As inventory
increases, competition for homes may soften, and could even bring a moderation in
sales prices, which, after 114 months of year-over-year gains, would be music to the
ears of homebuyers throughout the country.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
