Twin Cities home prices hit an all-time high with an annual median sales price of $280,000 for 2019. That’s up 5.7 percent from 2018. It also marks the eighth consecutive year of median sales price increases.
The latest statistics were revealed at a joint press conference on Wednesday by the Minneapolis Area Realtors and the St. Paul Area Association of Realtors. A solid economy and lower mortgage rates were cited as two key factors driving the market.
Home prices locally bottomed out in the wake of the Great Recession. In 2011, the annual median sales price in the Twin Cities was $150,000 – a staggering 35 percent drop from the annual median sales price of $230,000 in 2006, the peak of the housing boom at the time.
But the median sales price for 2019 is up 86.7 percent since the low point of 2011.
Some monthly median sales price numbers were even higher. Median sale prices topped $280,000 for a four-month stretch from May through August, peaking at $290,000 in June. Seasonality is always a factor. Home prices in spring and summer are higher than sale prices in winter.
The number of new listings previously declined for three straight years, from 2016 to 2018.
But for 2019, the number of listings increased slightly with a gain of 0.2 percent.
After a 3.2 percent drop in 2018, the number of closed sales saw a 0.8 percent uptick in 2019.
Single-family home sales were up 1.5 percent during 2019, but condo sales fell 1.7 percent and townhome sales declined 1.4 percent.