Twin Cities Home Sale Prices Reach All-Time High in 2020
New numbers released Tuesday show 2020 was a record-breaking year for home sale prices in the 16-county Twin Cities metro. Limited inventory and high demand spurred by historically low interest rates led to the price spike.
According to the 2020 report released by the Minneapolis Area Realtors and the St. Paul Area Association of Realtors, the median sales price rose 8.9 percent to $305,000, a record high. On average, sellers obtained 99.8 percent of their list price, the highest since at least 2003, the report said.
Brandon Doyle, a realtor with Re/Max Results and the Maple Grove-based Doyle Real Estate Team, says he already anticipates a crazy spring due to the demand for homes.
“We’re still seeing a very high demand for homes, multiple offers, and we continue to have a lack of inventory,” said Doyle. “So this spring, I kind of anticipate that a lot of sellers are going to go ‘oh, wow, my house is worth way more than I thought it was.'”
Doyle says it was an unusual year as showings remained steady through December with only a slight drop during the holidays.
Inventory At Less Than One-Month Supply
The report also showed sellers getting sales done in less time. Half the sales involved accepted offers in 18 days or less. Multiple offers also remained commonplace, particularly at lower price points where the inventory shortage is even more pronounced.
“Inventory remained a hurdle, but homeowners have never had so much equity in their homes and buyers haven’t seen rates this low in 50 years, offsetting rising prices,” said Todd Walker, president of Minneapolis Area Realtors.
The months supply of inventory was down 47.1% to 0.9 months. Five to six months of supply is considered a balanced market.
Median Sales Prices in Northwest Suburbs:
- Plymouth: $392,000 (+3.2% over 2019)
- Golden Valley: $367,450 (+7.2%)
- Maple Grove: $335,500 (+6.6%)
- New Hope: $292,250 (+12.4%)
- Brooklyn Park: $283,255 (+6.9%)
- Robbinsdale: $264,000 (+10.0%)
- Osseo: $257,900 (+3.2%)
- Crystal: $255,000 (+9.2%)
- Brooklyn Center: $240,000 (+9.1%)