Pending sales in February 2020 broke the trend of decreasing sales with a strong 23.9% increase over the same month in 2019. This was more than 2.5 times the change of any other month in the past twelve months.
New listings also increased significantly after having fallen the previous three years, but at 19.9% not enough to offset the increase in pending sales.
Closed sales increased 6.0%, days on market before pending dropped to 67 days, and percent of list price received was 98.0%. Competition continued to be strong as median sales price increased 6.3%…
… and inventory dropped by 12.4%.
The best measure of inventory in the marketplace is told by months supply, which takes into account both the number of homes for sale and the rate at which they are selling. A 5-6 months supply is considered balanced between buyers and sellers.
Months supply in February was the lowest in 4 years, at 1.6 months. When looking at months supply by property type, townhome supply was lowest at 1.1 months.
Breaking out the months supply of homes by price range is even more telling. Homes in the $150k – $250k price range are scarcest with less than a one month supply, but it continues to be a buyer’s market all the way up to $1M+.
Low interest rates and rising rents continue to fuel buyer demand.
The data in this post comes from statistics released by the Minneapolis Area Association of Realtors. Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
Click here for local reports on 350+ metro area communities
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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