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Market Update: May 2021

Posted by VIBE Realty on Monday, June 7th, 2021 at 10:38am.

Hello again, and welcome to another market recap brought to you by VIBE Realty. If this is your first time reading our recap, then stay tuned as we dive into the ever so changing numbers of the Twin Cities real estate market. If you are returning from last month or have been following along with us in the past, then welcome back!

You see, spring is typically a very busy season in our market. The snow has melted, the school season is wrapping up, and for those looking to buy or sell real estate, there's a tendency to want to get it done before summer for multiple reasons. With the last year having as many ups and downs as it did, we've been watching closely to try and determine whether or not that would be the case this year, as things return to normal following the global pandemic. 

Well, summer is now in full swing, and we left off last month wondering if historical trends of the summer season would take effect, or if we'd continue to see the aggressive numbers we've seen so far over the spring. So where did we land? Well, kind of both, actually. Let's dig in.

To start, it's safe to say that the aggressiveness is still heavily in play just by looking at the Days on Market. For the first time, this is now down to just one week, which is again, another record low. Yes, it only went down one day from last month, but the fact that this continues downward shows that homes are selling at a record fast pace. Months Supply of Inventory stayed the same as it did in April, comfortably sitting at just under a month.

So yes, they're selling fast, but are the price points still going up? Yes...just, yes. The Twin Cities Median Home Sale price is now at almost $350k, and the Average Sale Price just tipped the scale by going over $400k...$401k to be exact. Those are the highest we've seen on record as well, and there's really no sign of them slowing down. Total Homes for Sale has fluttered a bit, and actually gone down by a few hundred. When will the inventory start to match the buyer demand?

June will be very interesting to see, as this is the first month of the year where us Minnesotans tend to pack up and go north, or maybe take that vacation we've been waiting to take now that many of the COVID restrictions have been lifted. Does that mean even less people listing their home for sale? Or will that mean less active buyers as they begin their summer? Time will tell. Either way, if you're planning to make a real estate move in this market, you will not regret working with someone who can confidently show you the way, so don't hesitate to reach out and let us help. Be sure to come back for June's updates once the numbers come up. See you then!

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