New beginnings...
The first month of 2021 is officially in the books! After riding the err...bumpy rollercoaster of last year's market, we look to January's numbers to see what the new data is telling us about how the spring may shape out.
There's a reason for the term molasses in January, and if you live in Minnesota, you're probably already aware that it's almost always the coldest month on record here. Turns out, that has an effect on the real estate market as well, because historically, it's a pretty slow month for home sales. Weather-wise, however, this January was pretty tame. Yes - there's a polar vortex coming, but it's February now! All that said, let's look at the numbers to see what they can tell us.
New listings went up from December, which is good to see. It was still below last January, coming in at around 3,600 compared to over 4,000, but it would have been a bit more worrisome if they continued to trend down from last month. Total units sold was down from last month, which is sort of to be expected, given that December is almost always the slowest real estate month here, but this number landed at basically the exact same as last January.
Days on market continued to go up for the third month in a row, but again, this is pretty standard for winter. Look for this number to take a big dip as we approach March/April. The average sale price ticked down a bit to about $350k, and has been trending slightly down since October. This is an indicator that the fall was extremely competitive, driving home prices way up - another number I would expect to climb in the spring.
The big one I'd like to focus on today is months supply of inventory...this has now continued to go down for the ninth straight month in a row. For reference, months supply of inventory is a great indicator of the market demand in general because it showcases the basic concept of supply vs demand. Seeing this trend continuing down really indicates that the Twin Cities real estate market is very much in demand overall, and if that continues, will likely be the trend for 2021.
As things start to warm up, we'll be following the data closely, so be sure to check back for next month's update as we the spring market approaches. That said, if you are looking to make a real estate move, be sure to connect with an experienced professional at VIBE that can help you every step of the way. You'll be glad you did.
Written by Steve Anderson, Broker at VIBE Realty
