Minneapolis vs. St. Paul
The past year showed a gradual and consistent increase in median home prices throughout Minneapolis, St. Paul and the greater Twin Cities region for all types of homes, including single family, condominiums and townhouses. The overall median sale price increased by 5.4% in Minneapolis, and 2.6% in St. Paul. Inventory is low, typically favoring those selling rather than buying, especially at lower-end price points in high-demand neighborhoods.
Overall, St. Paul remains a more affordable city with a September 2017 median sale price of $194,000 versus Minneapolis' $245,450. City dwellers shopping for new homes may be taking notice. Lately, I've met more and more Minneapolitans searching for homes east of the river. The reason most often cited? Affordability. They can enjoy the convenience and amenities of urban living for less. However, low inventory across the Twin Cities region might also be a factor. The months supply of homes for sale in Twin Cities has been steadily declining throughout the year which may be forcing shoppers to expand their search beyond first-choice locations.
All data from MLS Northstar Infosparks, Oct 25, 2017.
Rise and Fall
These interactive graphs depict slow and steady growth in sales price along with a simultaneous drop in inventory over the past year in Minneapolis, St. Paul and the six-county region. The data points are derived from our regional MLS database and will remain live on this post, updating continually as the market data changes.
Results are based on traditional sales (no bank intervention), all construction types (newly built as well as existing), and all sizes of homes.
Median Sales Prices | Past Year
Months Supply | Past Year
A Seller's Market? It Depends
If you've been shopping for your first home or searching in the lower-end price ranges, you've most likely felt some competition. Low inventory of more affordable homes has typically favored sellers and often created multiple offer scenarios, especially in coveted neighborhoods. If you plan to sell in this range and move up, however, you may be perfectly positioned. Inventory in the $400,000-$700,000 range remains much more balanced, alleviating competition among buyers searching for those homes. So, if you're thinking of moving up, now might be a smart time.
A 5-6 months supply represents a balanced market. Lower supplies typically favor sellers.
All data from MLS Northstar Infosparks, Oct 25, 2017.
Location Matters
Remember that real estate trends are local and can vary greatly by city, neighborhood or even block. What's happening in your area may be different than what's happening in the larger region. If you'd like specific market data for your location and home, let me know. I can crunch the numbers and send you custom graphs reflecting specific trends in your city and neighborhood, or prepare a more in-depth market analysis using specific info. about your home.
Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.