November 2020 real estate market update… inventory at record low

2020-11-historical inventory2

Inventory has been in a basic falling pattern since the 2007 peak, but 2020 has hit a new low, 37.9% below last year at this time. Activity usually is slowing down at this time of year, but 2020 has been setting records all year. New listings in November actually increased 1.3% over last year, but that wasn’t enough to keep up with increases of 13.4% in pending sales and 18.6% in closed sales.

2020-11-new-pending-closed

This fueled fierce competition for homes for sale, resulting in a drop in average days on market to only 34 days, 33.3% below November 2019. Sale prices averaged 2% over list price, something unusual for November. Median sales price for November hit a new record, at $310,000.

2020-11-DOM-percent-price2

Months supply of inventory, the amount of time it would take for the current supply to be sold out if sales continued at the current rate, is again in record low territory. At 42.9% below last November, it is the biggest drop all year. All property types averaged together have a 1.2 month supply. Houses have a 1.1 month supply, townhouses a 1.0 month supply. If you are looking for condos you will have better luck, with a 3.3 month supply. The market is considered balanced between buyer and seller when there is a 5-6 month supply.

2020-11-supply of inventory

Of course there are differences by price range, but not as much as you might think. It is an extreme seller’s market in prices below $1M, with the shortest supply in the $190,000-$250,000 price range. But even homes priced $1,000,000 and over are at the high end of the balanced market range of 5-6 months.

2020-11-months supply by price range

The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area 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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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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