Market Update: March 2022

We Minnesotan’s all know that feeling of that first summer breeze that hits your face and lets you know that warmer days lie ahead. Isn't it great? Well summer is back, just look outside. What's that you say? All you see is mud and sleet? Oh my, you didn't think I was talking about the weather, did you? Oh gosh no, I'm talking about the real estate market of course, because we're back to summer-like numbers, and more extreme "temps'' than we've ever seen. Let's take a look!

When you look at the average Days on Market for homes in the Twin Cities, you can see it's been climbing steadily since last July. Normally a sign that things would be balancing out a bit in the market, Realtors welcomed longer selling times with open arms. Now, just take a look at the graph for March. That's right - we're talking a steeper decline than your last black diamond run where you almost tore an MCL. We dropped over an entire week in just one month, landing at just 12 days, and seems to be headed towards single digits...again.

Of course, along with that comes some dramatic shifts in price points. The average and the median Twin Cities prices both climbed substantially over March, with the median going up by roughly $13k ad landing at a total of $350k - and the average seeing an increase of $17k, and toppling the $400k benchmark once again. That is the largest increase we've seen over a years period of time, and both of these are very similar to what we were seeing last summer.

Finally, we'll look at inventory. The Months Supply of homes now sits at only 0.8 of a month, which is the lowest we have ever seen. The good news might be that we saw a pretty dramatic uptick in New Listings hitting the market, going up by over 1,500 from last month and landing at a total of 5,572 homes. However, this was to be expected, and these homes were promptly swooped up because the Total Homes Sold was up at roughly the same rate (3,281).

All in all, there are some encouraging numbers here in March, as the market has certainly started to heat back up. But it is hard not to look back at last year's extremes and think we may still be going through some of the same things, and it is becoming pretty clear that until we see more inventory hit the shelves, we will continue to experience a fairly imbalanced market. If you have a home to sell or are looking to make a purchase, we urge you to connect with a professional here at VIBE to help you along the way. In an extreme market like this, it takes a great strategy, and that's something we are always confident we can provide.

Thanks for reading, and we'll see you next month!