Welcome to the Market Recap for September 2020. There's been an interesting shift since last month, so let's take a look at the data and see where the Twin Cities real estate market may be headed for the fourth quarter of this undeniably tumultuous year.
Over the summer, we've watched the sales numbers climb, climb again, and then climb some more. Prices constantly going up and days on market consistently going down...but of course, that is unsustainable. I've mentioned a few times in past recaps that it seems we are "waiting for the other shoe to drop" - so did it happen? Honestly, it's probably too early to make the official call, but we are seeing some key indicators from trends over the last two months that the market is starting to shift.
It seems we have finally started to plateau, as most of the numbers for September either stayed the same, or even went down a bit. Check out all the categories that have essentially stayed the same since last month: Monthly Supply, Total Homes for Sale, Average Sale Price, and Days on Market. That may not seem like a huge deal, but it is still a significant change when looking at the trends since spring.
Total Units Sold have only gone slightly down, and New Listings did not see quite the jump we were hoping for to help balance out this Seller’s market (although we’re still optimistic for this fall). The largest change actually came in the Median Sale Price category, which dropped almost $7,000, indicating the only drop since May, and one of the largest of the year. May is when we started seeing the impacts of COVID in the real estate trends, so this could be the biggest indicator of whether this will stay a Seller’s market for the remainder of the year.
Overall, it's too difficult to tell from one month’s numbers if this will be a trend for the fourth quarter. With COVID, the November election, and the rest of this awkward school year still to be determined, we probably aren't yet seeing the overall impact everything will have on our local real estate market. We'll continue to cover this every month, so keep an eye out for our latest reports. Remember, if you're looking to make a real estate move this year, we urge you to work with one of our professional real estate agents who can help guide you along the way. Click here to get in touch with us.