Data reveals major market indicators are holding their own in city following unrest
(July 28, 2020) – According to new data from the Minneapolis Area REALTORS® (MAR), the Minneapolis housing market has remained steady amid the civil unrest following the death of George Floyd.
In its report Minneapolis Housing Market: Are Homeowners’ Fleeing’ the City? MAR looked at four indicators that measure housing activity and compared the city of Minneapolis against surrounding cities over different ranges of time. According to MAR’s analysis, there was no significant change in the Minneapolis housing market in comparison to surrounding cities following the death of Mr. Floyd on May 25, the ensuing riots that damaged or destroyed hundreds of businesses in the city and the calls for police reform.
Minneapolis Housing Market Report “Since Mr. Floyd’s death, there have been several misleading claims that Minneapolis residents are fleeing the city,” said MAR 2020 President Linda Rogers. “Utilizing data from NorthstarMLS, MAR conducted a thorough analysis of the housing market and the data clearly shows otherwise.”
Contrary to reports of a surge in new listings since Mr. Floyd’s death, the data shows listings actually went down in Minneapolis and surrounding cities for the week ending May 30. While the number of homeowners listing their homes for sale in Minneapolis has increased since then, that increase is comparable to other cities and is still below 2019 levels.
Looking at the number of days a home stays on the market, Minneapolis was the only city to show a decline in market times since the onset of the violence in the city. In June, homes sold in 5.9% fewer days in Minneapolis compared to June of 2019. St. Paul, Golden Valley, Eden Prairie and Minnetonka all saw double digit increases in market times, while St. Louis Park saw an 8.3% increase and Bloomington was flat.
“It is evident that Minneapolis properties are in high demand, with buyers snapping up available homes,” said Rogers. “Buyers are still very interested and committed to living in the city.”
Taking a look at the number of showings in the weeks since Mr. Floyd’s death, Minneapolis has not shown any difference in buyer interest from the other large metro cities in the report. All areas saw showings take their typical dip around Memorial Day and increase since, with the largest gains in land-rich Brooklyn Park followed by Bloomington and Maple Grove.
MAR’s review of the data does not support claims that the city of Minneapolis is seeing a disproportionate increase in seller activity in the weeks following the unrest. In fact, the analysis has shown recent market activity in the city of Minneapolis is not unique from other surrounding cities.
Well-presented, turnkey properties in Minneapolis very often have multiple offers. Even if a disproportionately large share of homeowners were to list their homes, the insatiable demand is likely to absorb those extra listings, likely limiting any negative impacts on values.
View the report Minneapolis Housing Market: Are Homeowners’ Fleeing’ the City? and register for the webinar on August 6 discussing the white paper. It will also feature MAR’s Director of Government Affairs, Eric Myers, who will provide an update on the reform efforts and answer your questions.