Months supply of condos continues to grow, up 62.5% in September 2020 compared to September 2019. Months supply of townhomes dropped 21.1% and months supply of houses held steady at 44.8% compared to last year. The three were fairly close at the beginning of the year, then started splitting in May. If you are looking to buy a condo, this means more choices and less competition.
Overall months supply of inventory is down 37.0% compared to last year, with only a 1.7 month supply. Breaking it out by property type, however, gives condos a 3.9 month supply… good news for buyers looking for a condo.
New listings showed a nice increase of 9.8% over last September, but with pending sales almost triple that with a 27.7% increase, the total number of homes for sale dropped a whopping 32.0%.
The graph below shows how the inventory has been low for several years, but the two red dots show the significant drop of 32.0% between September 2019 and September 2020.
Closed sales were up 21.1%, average days on market until pending sale dropped 15.9% to 37 days. Average sale price continues to be over list price, at 100.5% above list price in September.
The result of heightened competition for a limited number of listings is a continued increase in median sale price, September showing a year-over-year increase of 10.8% to an average median sales price of $310,000.
As the median sales price has increased, months supply of homes by price range has also shifted. The $350k-$500k price range dropped a whole month. In August there was a 2 month supply… in September only a 1 month supply. The $500k-$1M price range supply also dropped, from 3.5 months to 3.0 months… and the $1M+ price range dropped from a 9.3 month supply in August to an 8.5 month supply in September. Supply in the $250k-$350k price range is the same as last month, with increases in all price ranges below that.
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.
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Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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