Skip to main content
Publish date:

Despite pandemic, Twin Cities housing market set records in 2020

Sales were up 7.7% in 2020 compared to the year before.

The housing market in the Twin Cities had a record-breaking year in 2020 despite there being a pandemic that left thousands of people out of work and a weeks-long stay at home order in what's usually the busiest time for the housing market. 

In fact, the pandemic aided in the active housing market, the Minneapolis Area Association of Realtors and the St. Paul Area Association of Realtors said in a news release Tuesday. The pandemic forced people to work and learn from home, leading to people wanting more space. 

Looking to buy or sell? Find a realtor using the BMTN directory

“Despite several challenges, the Twin Cities housing market exceeded all expectations,” President of Minneapolis Area Realtors Todd Walker said in a statement. “Inventory remained a hurdle, but homeowners have never had so much equity in their homes and buyers haven’t seen rates this low in 50 years, offsetting rising prices.”

This, coupled with historically low rates, helped the housing market, with sales up 7.7% (64,479 properties) in the 16-county Twin Cities metro in 2020 – the second-highest since "at least" 2003, the release said.

According to the release, in 2020, sellers listed 76,348 properties on the market, which was just 0.1% more than in 2019. Low inventory helped drive up median sales price, which reached a record-high $305,000, up 8.9% from the year prior. 

The associations said on average sellers got what they listed their property for 99.8% of the time last year (the highest since 2003) and homes sold fast, only spending about 18 days on the market. 

“Predictably, the result of record sales combined with ultra-low inventory meant rising prices and sellers accepting stronger offers in less time,” President of the Saint Paul Area Association of Realtors Patrick Ruble said in a statement.

Meanwhile, the "core cities" of Minneapolis and St. Paul are still attractive to homebuyers with signed contracts up 10% in Minneapolis and 16.4% In St. Paul. 

Overall, single-family sales were up 10.8%, townhome sales were up 3.4%, new construction sales were up 14.1% and luxury properties (those priced at $1 million or more" have been "soaring higher," up 25.4% from 2019. 

One segment of the market hasn't been doing as well, though. The release notes condos continue to lag with slightly lower prices, market times higher and offers weaker, with condo sales down 10.6%. 

Meanwhile, foreclosure sales were down 20.9% and short sales fell 25.9%. 

Next Up

no dancing

Footloose! Duluth scraps Probition-era ban on unlicensed dancing

Establishments had to have a license to allow the public to dance.

ted mann concert hall - university of minnesota

2 armed suspects rob victim at U of M concert hall

The two suspects pointed guns at the victim.

West St Paul, Minnesota - June 2019

Nine police agencies called in for crowd control after 2 shot in West St. Paul

Police say a large group "attempted to take control" of part of the crime scene.

Brooklyn Center police, Daunte Wright

Brooklyn Center approves $1.3M public safety budget, including policing reforms

The city will use some money from the police department for the new programs.

snow, slush

Snow impacting morning commute across southern Minnesota

A quick inch could make a bit of a mess on the roads.

40636734693_0ec9b711a6_k

Minnesota United star allegedly hit teen with gun in Argentina

The 26-year-old could face charges in Argentina.

Chris Finch

Hawks bury Timberwolves in 3-point barrage

Without D'Angelo Russell, the Wolves couldn't keep up with the Hawks.

P.J. Fleck, Gophers football

Kirk Ciarocca returning to Gophers as offensive coordinator

The architect of the 2019 offense will look to revive the Gophers.

Klobuchar - MTP - NBC screengrab

Klobuchar says Congress should pass law to protect abortion rights

Her comments came as the Supreme Court appears poised to weaken — or gut — Roe v. Wade

MPD missing Heard - crop 1_

Minneapolis woman missing a week is found safe

The 36-year-old hasn't been seen or heard from recently.

unsplash cold winter breath dark

Hello, winter: List of the coldest wind chills in MN Monday morning

The state went from a relatively mild start of the season, to downright frigid wind chills.

deer

1 CWD-positive deer in Brainerd Lakes area, so surveillance will continue

The CWD monitoring measures were supposed to end after this year.

Related

House for sale

A seller's market: Record-low inventory in Twin Cities, buyers fight for new homes

Area Realtor associations have released their February housing report.

House for sale

The crazy Twin Cities housing market is showing signs of slowing down

Agents are seeing fewer multiple offers and no inspections are less prevalent.

House for sale

Twin Cities housing market offering mixed blessings for buyers, sellers

It's good for those moving up the ladder, less so for those getting on.

House for sale

Twin Cities median home price hits record $280,000 in 2019

The Minneapolis Area Association of Realtors has issued its annual report.

House for sale

MN house prices rising despite pandemic, though pending sales are tumbling

The coronavirus crisis is having an impact on the real estate market, just not house prices.

Pixabay - keys home house

Latest data show Minnesota's housing market is still crazy

Demand continues to outpace supply, and sales prices are at historic highs.

House for sale

Median house prices in Twin Cities pass $300,000 for first time

However, there was a significant slump in new listings resulting from COVID-19.