Market Update: June 2021
Posted by VIBE Realty on Wednesday, July 7th, 2021 at 11:21am.
Written by VIBE Owner/Broker Steve Anderson
It's that time again, and yes, we're going to be discussing another month of record breaking numbers. But could the tides be shifting a bit at the same time? Let's take a look.
We left off last month wondering how the warm weather brought on by the late spring/early summer, combined with COVID restrictions being lifted, was going to affect the real Twin Cities real estate market. Would Minnesotans head north and let their home buying desires take a back seat to some fun in the sun? We may not know if that truly happened until we see next month's numbers because it takes a while for these sales to actually close, but specifically looking at June, it was as aggressive as ever.
Let's start with Total Units Sold. This increased by the largest amount we have seen all year, and reached a number that we haven't seen since August of 2019, ringing in at over 6,500 homes. That's almost 1,700 more than in June, and is a healthy injection of homes getting into the hands of buyers that have likely been looking for a long time. New Listings also changed direction from last month's dip, and reached the highest we've seen all year, coming in at 7,764, which could be a great sign for next month.
Months Supply of Inventory is always a great indicator of how aggressive the market is. As a reminder, this measures the total inventory of homes vs. the rate at which they're being sold, and let's us know how fast we'd sell out of homes if no new listings hit the market. This was trending downward all year, and has been sitting below one month since December, but with the amount of new listings going up this month, this metric is trending the right direction and is back over a month now, officially at 1.1.
For Total Homes for Sale, we hit our biggest increase of the year, going up by more than a thousand homes from last month and coming in at over 6,000. Compared to last summer, though, there are almost 3,000 fewer homes for sale right now than there were last year at this time. Days on Market held steady at exactly one week, while the Median and Average Sale Price both increased for the fifth month in a row. They both hold new record highs, with the median coming in at $350k, and the average now at $407k.
Many new record highs across the board again, and trends continue to showcase a very aggressive market. However, the underlying current of new listings increasing may really start to help balance things out over the hot summer we're experiencing. Tune in for next month's recap to see how July plays out. And, if you're planning a real estate move anytime in the near future, don't go it alone - be sure to connect with an agent here at VIBE to help you navigate this intense market we're in...you'll be glad you did.