August 2, 2020
Monthly Real Estate Market Update
During the month of June, the median sale price of homes in the Minneapolis/ St. Paul market rose to $305,000. This is a 5% increase year over year from June 2019, according to Minneapolis Area Association of Realtors (MAAR).
This is exactly the kind of “push in the right direction” that the market needs! Experts have noticed that after two sluggish months of low inventory and a low amount of buyers, buyers are starting to return in full-force.
According to the previously mentioned data released by MAAR, June 2020 was actually one of the best months on record in the Twin Cities. Within the month, buyers had signed 6,819 Purchase Agreements. This is 6% more than in June 2019.
One factor that had a huge influence on this jump was the displaced demand from the previous two months that buyers and sellers were very inactive in the market. The months of April and May are typically seen as the busiest Real Estate months of the year. Agents look forward to the “Spring Market” due to how many buyers and sellers are typically out there during this time. However, this year things were a bit different. While the pandemic undoubtedly played a huge role in the inactivity on the market, the prolonged government shutdown and metro-wide protests also were contributing factors.
In addition to the pent up demand, buyers also came out in full force during the month of June due to record-breaking mortgage rates. On Thursday, July 17th, Freddie Mac reported that the 30-year fixed-rate mortgage was now averaging 2.98%. To understand how significant this is, remember that this is the first time that rates have fallen anywhere below 3% in the survey’s 50-year history. No one knows how long these rates will last, and this has definitely inspired many buyers to “get it while the gettin’s good”!
While there are no doubts that buyers are flocking to saturate the real estate market, sellers are moving a bit slower to get back into the game. While home inventory is still relatively low, sellers did receive nearly 100% of their original asking price across the metro area in the month of June, according to MAAR.
The Real Estate Market is starting to claw its way back up to the top! And while no one has a crystal ball, we don’t see any signs of the market slowing down anytime soon.