Market Update: October 2021
Posted by VIBE Realty on Thursday, November 4th, 2021 at 9:07am.
In general, inventory has been low and prices have increased since the summer of 2020. So, after a very interesting September where we saw many important metrics take a dip, we were anxiously awaiting the results for October's recap to see which direction we were going. Read on to see what the beginning of winter can tell us about how this crazy year will wrap up.
Let's start by talking price point. The Average Home Price in the Twin Cities had gone up every month in 2021, reaching the highest we've ever seen on record at just over $413k. That is until September, where it tumbled by almost twenty thousand dollars, leaving us wondering if that was the new direction we were heading or just an outlier. Well, Octobers Average Sale Price turned around and went back up by about five thousand dollars over September, landing at $396k (which is the same as May of this year), and the Median Sale Price stayed at $340k, so it looks like last month was just a bit unique.
We must have more listings to pick from this month, then? Nope. Actually, the total New Listings for the month of October was just under six thousand (5,930 to be exact), and is a full one thousand less than we had last year at this time. It is also the fourth month in a row that the amount of new listings has gone down, and not by small margins either. Total Units on the market came in at 7,378 and is almost two thousand less than last October. It has been slowly increasing since February, though. Total Units Sold had its second largest drop of the year landing at 5,326 - seems there just wasn't enough new inventory to keep things moving upward there.
So if you're selling your home, how long should you expect it to be for sale? Well, the Average Days on Market for October was exactly two weeks, which is the highest it's been since February. That tells us that buyers are getting a bit more disciplined in waiting for what they want and not jumping on something day one. Lastly, the Months Supply of Inventory went slightly down to 1.3 months, but this has held steady in that range pretty much all year, which really tells us one thing...it's still an aggressive seller's market.
It seems that while we head into winter, people are hunkering down and are still hesitant to sell. Interest rates continue to remain low, and the Twin Cities continues to be a highly desirable place to live, unless of course you like winning sports teams. As agents, we study this market closely, and can help immensely in minimizing risk and maximizing potential for any of your real estate needs, so don't hesitate to contact VIBE at any time if you're going to make a move - we're happy to help. Thanks for reading, and we'll see you next month!