The latest numbers show that 2019 was off to a good start for TwinCities residential real estate. Sellers produced another increase in listing activity, while buyers entered into more contracts than last January even while closed sales fell. Market times continued to shrink as the median sold home price rose compared to last year. After two months of declines, the ratio of sold to list price rose slightly in January. There are some early indications the market is improving for buyers, even though sellers still have strong negotiating leverage and quick market times.
The number of active listings for sale has increased compared to the prior year. Buyers have seen inventory gains for four consecutive months. Months supply also ticked up to 1.6 months, suggesting the market is still tight but rebalancing and normalizing. After increasing to 5.0 percent in November, mortgage rates have settled back down around 4.5 percent. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied. Inventory could rise substantially, and we’d still have a balanced market.
January 2019 by the Numbers
(compared to a year ago)
- – Sellers listed 4,359 properties on the market, a 7.8 percent increase from last January
- – Buyers closed on 2,681 homes, a 4.6 percent decrease
- – Inventory levels for January rose 1.1 percent compared to 2018 to 7,828 units
- – Months Supply of Inventory increased 6.7 percent to 1.6 months
- – The Median Sales Price rose 6.1 percent to $258,900, a record high for January
- – Cumulative Days on Market declined 5.8 percent to 65 days, on average (median of 44)
- – Changes in Sales activity varied by market segment:
- – Single family sales fell 5.2 percent; condo sales rose 5.3 percent; townhome sales declined 2.9 percent
- – Traditional sales decreased 1.4 percent; foreclosure sales sank 50.3 percent; short sales were flat
- – Previously-owned sales were down 5.5 percent; new construction sales ramped up by 12.8 percent
“We’re still very much undersupplied locally and nationally,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “We’re expecting 2019 to be a good year for both buyers and sellers.”
“Our data shows slightly more inventory, and rates are down from where they were at the end of last year,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “Buyers should know that they’re going to find more options out there this spring and summer.”