September 2020
Strong buyer activity has continued into the fall, which is normally the start of the seasonal slowing of the housing market. With stronger buyer activity in the market this year and the continued constrained supply of homes for sale, speedy sales and multiple offers are likely to remain a common occurrence and will keep the housing market hot even when the weather is cooling. New Listings in the Twin Cities region increased 9.8 percent to 7,771. Pending Sales were up 27.7 percent to 6,443. Inventory levels fell 32.0 percent to 8,936 units. Prices continued to gain traction. The Median Sales Price increased 10.8 percent to $310,000. Days on Market was down 15.9 percent to 37 days. Sellers were encouraged as Months Supply of Homes for Sale was down 37.0 percent to 1.7 months. While mortgage rates remain near record lows, The Mortgage Bankers Association reports that lending standards are tightening, which makes it a bit more difficult for some buyers to qualify. At the same time, unemployment remains substantially higher than a year ago due to COVID-19. Despite all this, buyers are out in full force this fall, showing amazing resilience in the middle of a pandemic.
