The median home price in the 16-county metro is a whopping $337,000 — the highest on record.
That's according to new data from the Minneapolis and St. Paul area realtors associations, which say the median home price in April 2021 is 10.5% higher than it was in April 2020.
For reference, the median home price in the Twin Cities in 2019 was $280,000 - which was, at the time, a record-high.
Not only are homes selling for more, but they're spending less time on the market. Half of the homes for sale go under contract within eight days of being listed, which is the fastest time in at least 14 years.
The association notes these are both signs that the housing supply isn't keeping up with demand.
“It’s promising to see improvements in housing supply, but it’s clear that we aren’t out of the woods just yet,” said Todd Walker, president of Minneapolis Area Realtors. “In time, more potential sellers will be encouraged to list, enticed by rising prices and more inventory. In the meantime, developers need incentives to expand new inventory, particularly in affordable price ranges.”
According to the associations, supply rebounded to pre-pandemic levels last month, but demand has increased. Pending home sales are up 34% from April 2020 and exceeded 2019 numbers by 8.2%.
Currently, the Twin Cities has about one month's supply of inventory. Four to six months of inventory is considered a balanced market.
"Buyers still benefit from record-low mortgage rates at around 3%,” according to Tracy Baglio, president of the Saint Paul Area Association of Realtors. “Although a limited supply is driving prices higher, low rates are a strong incentive to offer a competitive bid for a home.”
Sales of single-family homes were up 32% in Minneapolis and 14.8% in St. Paul in April, and condo sales across the 16-county metro are rebounding, rising 50.6% in April, outpacing single-family and townhomes.
Sales on previously owned homes rose 10.3%, while new construction rose 2%. Meanwhile, luxury property sales of homes $1 million and above are up 180.6% compared to last April and 90.6% from April 2019.