Twin Cities Market Update – February 5, 2021

The U.S. Department of Housing and Urban Development released their December housing report this week showing overall housing starts increased by a seasonally adjusted annual rate of 1.67 million units. Single-family housing starts increased 12 percent to a 1.34 million unit seasonally adjusted annual rate, the highest level since September 2006. Expectations are for further increases in building activity in 2021, though rising material costs and a lack of buildable lots and labor will temper activity and affect affordability.

In the Twin Cities region, for the week ending January 23:
• New Listings decreased 4.6% to 899
• Pending Sales increased 9.1% to 879
• Inventory decreased 40.6% to 5,056

For the month of December:
• Median Sales Price increased 10.0% to $307,000
• Days on Market decreased 30.4% to 39
• Percent of Original List Price Received increased 2.5% to 99.7%
• Months Supply of Homes For Sale decreased 41.2% to 1.0