March 2019 Market Insights

Buyers · Market Insights · Sellers

March 2019 Market Insights

 (compared to Feb. 2018)*

Southeast Minnesota area

• New listings: 387 | -14%
• Avg. sales price: $193,298 | -6%
• Closed sales: 271 | -3%
• Days on market: 66 | -15%
• Inventory: 1,142 | +9%
• Months’ supply: 2.2 | +16%

Extreme weather slowed the February market

It not a huge surprise but, the February’s  record snowfall & cold temperatures and hit the housing market just as hard as potholes hit the roads. The local market took a pause as many postponed or modified plans for a move. Fewer sellers listed their homes and buyer activity followed with a 3 percent decrease in closed sales compared to last February.

The good news is this slowdown seems temporary.  In fact, the latest numbers for residential real estate show some strength approaching the spring market. Home prices median sales price came in at  $193,298  and market time from listing to sold are down - 15% at 66 days for the greater Southeast MN the market.

What is the outlook for the real estate environment? Due to February’s unusual weather, March activity will be a better indicator of where the market is heading. Overall the outlook remains positive with a strong labor market a favorable interest rates. Sellers still benefit from strong pricing, favorable negotiating leverage and quick market time, however, buyers are encouraged. Despite February’s slower activity, buyers have seen an increase in inventory for four of the last five months. Buyer competition remains most evident in the entry-level prices. Properties had a strong February sales increase over last year.

Find out everything you need to know about buying—get the Go-To Guide for Buying a Home. It’s free and full of answers to your home buying questions.

Market activity has increased in the coming weeks with the welcomed arrival of warmer temperatures. Keep an eye out for the April Market Insights to see where trends are developing.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.6%
• Mortgage rates saw the Biggest 1 Week Drop in a Decade!  Average 30-year fixed-rate mortgage 4.06 percent  *(Freddiemac.com) 
• New construction continues to be strong with sales up 5.3%

The long and the short of it

• Home sale prices are still rising, but the recent change in competitive mortgage rates will help with affordability.
• Lower price points are in high demand and still favor sellers.
• Higher price points are becoming more balanced.
• New construction appears strong.

Let’s get started

Your home is unique and so is your story.  You deserve more than a computer formulated look at your home’s value. We are happy to connect with you and give you real experience with local expertise to see what your home could sell for.  Feel Free to Reach out to us  for a free home analysis from your market expert.  Likewise if you are thinking of buying Contact us  for guidance from your local Realtors in Rochester MN area.

Other locations across Minnesota

Here’s a look at the other market indicators look like.   All percent changes are year-over-year.

Alexandria Area

• New listings: 92 | -2%
• Avg. sales price: $226,766 | +27%
• Pending sales: 58 | -6%
• Days on market: 58 | -6%
• Inventory: 294 | -19%
• Months’ supply: 3.0 | -17%

Brainerd area

• New listings: 369 | -22%
• Avg. sales price: $204,072 | -5%
• Closed sales: 208 | +18%
• Days on market: 84 | -18%
• Inventory: 1,290 | -25%
• Months’ supply: 3.3 | -23%

Duluth area

• New listings: 268 | +9%
• Avg. sales price: $176,766 | +2%
• Closed sales: 162 | +36%
• Days on market: 76 | -11%
• Inventory: 1,106 | +29%
• Months’ supply: 3.7 | +9%

St. Cloud area

• New listings: 146 | -21%
• Avg. sales price: $170,849 | +1%
• Pending sales: 118 | -9%
• Days on market: 89 | +9%
• Inventory: 346 | -20%
• Months’ supply: 2.3 | -18%

Northwestern Wisconsin area

• New listings: 516 | -35%
• Avg. sales price: $161,340 | +8%
• Closed sales: 380 | +16%
• Days on market: 207 |-2%
• Inventory: 5,529 | -8%
• Months’ supply: 12.4 | +23%
  • Months’ supply: 2.2 | +16%

Twin Cities Area

• New listings: 4,355 | -14.3%
• Median sales price: $265,500| +6.2% (a record high for February)
• Pending sales: 3,402 | -7.4%
• Days on market: 69 | flat
• Inventory: 7,936 | -5.7%
• Months’ supply: 1.6 | -5.9%

*Data courtesy NorthstarMLS  for February 2019.