July 2020
Healthy buyer demand and constrained supply continue to be the story for much of the country. Nationally, showing activity in July remained substantially higher than a year before and multiple offer situations are a frequent experience in many markets.With the inventory of homes for sale still constrained, a competitive market for buyers shows little sign of waning.
New Listings in the Twin Cities region increased 0.8 percent to 7,961. Pending Sales were up 10.3 percent to 6,866. Inventory levels fell 28.0 percent to 9,348 units.
Prices continued to gain traction. The Median Sales Price increased 10.4 percent to $312,500. Days on Market was up 7.9 percent to 41 days. Sellers were encouraged as Months Supply of Homes for Sale was down 29.6 percent to 1.9 months.
While the number of unemployment insurance weekly initial claims have been far lower in recent weeks than their peak in March and April, more than 1 million new claims are still being filed each week and more 31 million were claiming benefits in all programs as of early July, compared to fewer than 2 million in July 2019. Despite this significant economic impact, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels and home purchase mortgage applications up from a year ago, high buyer activity is expected to continue into the late summer and early fall market.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
