December is normally one of the slowest months of the year but strong buyer demand across most segments of the market, buoyed by near-record low interest rates, continue to drive a healthy sales pace in the face of a new wave of COVID-19 infections and a softening jobs market.
New Listings in the Twin Cities region increased 22.2 percent to 3,088. Pending Sales were up 15.0 percent to 3,680. Inventory levels fell 39.3 percent to 5,080 units.
Prices continued to gain traction. The Median Sales Price increased 10.0 percent to $307,000. Days on Market was down 30.4 percent to 39 days. Sellers were encouraged as Months Supply of Homes for Sale was down 47.1 percent to 0.9 months.
With low mortgage rates and strong buyer demand in most market segments, the housing market of early 2021 looks to continue the trends we saw in the second half of 2020. Low inventory and multiple offers on in-demand properties and market segments are likely to remain common while the market waits and hopes for a boost in new construction and a surge in home sellers to help provide more balance to the market.