January 2024 Market Insights

Key insights from Dec. 2023 (compared to Dec. 2022)*

• New listings: 2,453 | +6.7%
• Median sales price: $352,900 | +1.1%
• Closed sales: 2,895 | -7.3%
• Pending sales: 2,461 | +3.7%
• Days on market: 50 | 0.0%
• Inventory: 6,270 | -4.9%
• Months’ supply: 1.7 | +13.3%

The highlights

• Closed home sales were down 7.3% compared to last year, while pending sales increased 3.7%.
• Days on Market Until Sale held steady at 50 days.
• December continued to be a strong sellers’ market with sellers receiving 96.6% of the original list price.
• Months’ Supply is moving in the right direction toward more market balance.

2023 ended on an upswing with existing-home sales rising from a 13-year low, according to the National Association of REALTORS® (NAR). This, coupled with mortgage rates falling more than a full percentage point since October, set up 2024 to be more stable and predictable than recent years.

The fall in mortgage rates—at a two-decade high just a few months ago—has given homebuyers confidence, and it’s anticipated that this may be the catalyst to motivating existing homeowners to finally sell. Despite the sale of new homes dipping to the lowest level since November 2022 (down 12.2% from November 2023), the Twin Cities saw an increase in new listings (6.7%), as well as pending sales (3.7%) in December.

However, inventory continues to be an issue with levels falling 4.9%. This low supply, high demand environment has predictably caused home prices to rise for a fifth consecutive month of year-over-year price gains. This past year, the median price of existing homes rose 4% to $387,600 nationally and $352,900 in the Twin Cities area.

Affordability continues to be a barrier to many, but buyers can feel optimistic with a 13.3% increase in Months Supply of Homes for Sale (up to 1.7 months). Experts are predicting that it will take some time for inventory to enter the market and the seller-buyer paradigm to shift, but they’re confident that December’s results are a step in the right direction. Furthermore, the Twin Cities has the second-lowest unemployment rate in the U.S., which is good news for the local economy.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 1.9% (as of November 2023)
• Average rates for 30-year conforming mortgage 6.60%**

Ready to help

We are here to help you confidently navigate your housing needs, now and always. Whether you are researching future options, or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for October 2023.

**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.

Where you live

Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All % changes are year-over-year.

Alexandria Area

• New listings: 30 | +25%
• Avg. sales price: $310,633 | +25%
• Pending sales: 39 | -3%
• Days on market: 48 | +30%
• Inventory: 144 | +43%
• Months’ supply: 2.00 | +67%

Brainerd area

• New listings: 178 | +2%
• Avg. sales price: $301,823 | -7%
• Closed sales: 286 | +10%
• Days on market: 49 | +4%
• Inventory: 809 | +25%
• Months’ supply: 2.20 | +47%

Lake Superior area

• New listings: 130 | +30%
• Avg. sales price: $282,741 | +11%
• Pending sales: 225 | +7%
• Days on market: 40 | +25%
• Inventory: 644 | +29%
• Months’ supply: 2.60 | +53%

Southeast Minnesota area

• New listings: 256 | +31%
• Avg. sales price: $287,270 | -1%
• Closed sales: 358 | +3%
• Days on market: 52 | +18%
• Inventory: 770 | +17%
• Months’ supply: 1.80 | +29%

St. Cloud area

• New listings: 65 | +48%
• Avg. sales price: $257,192 | -7%
• Pending sales: 86 | +18%
• Days on market: 44 | +7%
• Inventory: 178 | +32%
• Months’ supply: 1.70 | +55%

Mankato area

• New listings: 99 | +80%
• Avg. sales price: $264,041 | +16%
• Pending sales: 92 | +61%
• Days on market: 88 | +21%
• Inventory: 322 | +29%
• Months’ supply: 2.30 | +44%

Northwestern Wisconsin area

• New listings: 183 | +27%
• Avg. sales price: $297,488 | +4%
• Closed sales: 273 | -12%
• Days on market: 87 | -5%
• Inventory: 1,175 | No change
• Months’ supply: 2.80 | +56%

West Central Minnesota area

• New listings: 137 | +54%
• Avg. sales price: $209,437 | +11%
• Pending sales: 148 | +16%
• Days on market: 54 | -5%
• Inventory: 549 | +33%
• Months’ supply: 2.60 | +44%

Bemidji area

• New listings: 19 | +90%
• Median sales price: $241,890 | -5%
• Pending sales: 23 | No change
• Inventory: 105 | +42%
• Months’ supply: 2.40 | +60%

Leech Lake and surrounding area

• New listings: 17 | -6%
• Median sales price: $260,000 | +7%
• Pending sales: 22 | -19%
• Days on market: 27 | -16%
• Inventory: 99 | +34%
• Months’ supply: 2.40 | +60%

Little Falls area

• New listings: 8 | -27%
• Median sales price: $230,200 | +31%
• Pending sales: 10 | -23%
• Days on market: 18 | +20%
• Inventory: 26 | +13%
• Months’ supply: 1.40 | +17%

Southwest Minnesota area

• New listings: 60 | +76%
• Median sales price: $183,500 | +15%
• Pending sales: 58 | -5%
• Days on market: 65 | +7%
• Months’ supply: 3.10 | +48%

Headwaters area

• New listings: 30 | +76%
• Median sales price: $250,000 | +1%
• Pending sales: 44 | -6%
• Days on market: 62 | +32%
• Months’ supply: 3.10 | +63%