July 2023 Market Insights

Key insights from June 2023 (compared to June 2022)*

• New listings: 6,664 | -16.5%
• Median sales price: $382,000 | +0.5%
• Closed sales: 5,343 | -18%
• Pending sales: 4,997 | -10.8%
• Days on market: 31 | +47.6%
• Inventory: 7,492 | -13.4%
• Months’ supply: 2.0 | +17.6%

Prices climbed up again; Months’ supply expanded slightly

The highlights

• The median sales price was up 0.5% from last June to $382,000 after two months of slight declines
• Days on market increased to 31, but half of homes sold in under 12 days.
• Sellers received offers at 101.3% of their asking price
• Both buyer and seller activity were down from last June
• Months’ supply moved to 2 months

A closer look

Sellers continued to occupy the sidelines in June with 16.5% fewer new listings coming on the market compared to a year ago. This limited supply continued to drive prices up, and June median prices were once again up from a year ago—to $382,000—after two months of modest declines. Buyer activity also slowed a bit, closing the supply/demand gap ever so slightly—although not nearly enough to balance the market, which still favors sellers.

Market dynamics remain local, as always. A few items of note:

• New construction sales: + 24.3%
• Existing home sales: - 12.8%
• Single family home sales: - 13.7%
• Townhome sales: + 0.8%
• Condo sales: - 3.2%
• Minneapolis sales: - 12.1%
• St. Paul sales: - 12.9%
• Cities with the largest sales gains were Annandale, Shorewood, White Bear Township and Delano.

Sellers are moving forward with new construction

Changes in lifestyle, family status, job or personal needs drive at least 25% of sales, according to the National Association of Realtors. And recently, Edina Realty agents are seeing more plans for action among sellers.

According to Edina Realty President Sharry Schmid, sellers are eager to move on with their lives and plans. “We’re seeing strong momentum in new construction as existing home inventory comes up short. If sellers can’t find what they are looking for in existing home options, they are turning to new construction.”

With sellers receiving 101.3% of their asking price, and holding an average of $185,000 worth of equity according to data published in Q3 2022 by Investopedia, they are able to take advantage of cash-on-hand for down payments or buying down interest rate points.

Buyers are also adjusting

According to Schmid, buyers have largely adjusted to interest rates. Schmid said, “While rates are higher than a couple of years ago, they are historically still low. The interest rates of a couple years ago are in the rearview mirror, and buyers are moving forward with their lives and plans,” said Schmid.

In some cases, that means buyers are adjusting their searches, budgets, and timelines to adapt to the market and lending environment, which has some lenders offering the ability to lock in rates, buy down points, or refinance at a lower fee in the future. Some buyers are also exploring downpayment assistance programs.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.9% (as of May 2023)
• Average rates for 30-year conforming mortgage 6.96%**

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 June 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: 131| No change
• Avg. sales price: $414,029 | +36%
• Pending sales: 102 | -3%
• Days on market: 31 | +48%
• Inventory: 193 | +66%
• Months’ supply: 2.7 | +125%

Brainerd area

• New listings: 789 | +34%
• Avg. sales price: $408,719 | +31%
• Closed sales: 540 | +76%
• Days on market: 37 | +6%
• Inventory: 1,121 | +92%
• Months’ supply: 2.9 | +34%

Lake Superior area

• New listings: 526 | +41%
• Avg. sales price: $333,939 | +24%
• Pending sales: 338 | +49%
• Days on market: 19 | -27%
• Inventory: 728| +50%
• Months’ supply: 2.8 | +87%

Southeast Minnesota area

• New listings: 618 | +1%
• Avg. sales price: $322,883 | +3%
• Closed sales: 680 | +53%
• Days on market: 33 | +6%
• Inventory: 769 | +74%
• Months’ supply: 1.8 | +100%

St. Cloud area

• New listings: 181 | -10%
• Avg. sales price: $302,394 | +19%
• Pending sales: 158 | -9%
• Days on market: 34 | +62%
• Inventory: 197 | +45%
• Months’ supply: 1.7 | +89%

Mankato area

• New listings: 205 | -14%
• Avg. sales price: $280,148 | -2%
• Pending sales: 165 | -21%
• Days on market: 74 | -9%
• Inventory: 294 | +70%
• Months’ supply: 2.1 | +110%

Northwestern Wisconsin area

• New listings: 647 | -16%
• Avg. sales price: $325,882 | +9%
• Closed sales: 504 | -10%
• Days on market: 76 | +23%
• Inventory: 1,482 | -11%
• Months’ supply: 3.7 | +16%

West Central Minnesota area

• New listings: 336 | +33%
• Avg. sales price: $225,002 | +9%
• Pending sales: 269 | +28%
• Days on market: 39 | -25%
• Inventory: 526 | +89%
• Months’ supply: 2.5 | +67%

Bemidji area

• New listings: 96 | -9%
• Median sales price: $247,000 | -9%
• Pending sales: 60 | -18%
• Inventory: 135 | +13%
• Months’ supply: 3.10 | +48%

Leech Lake and surrounding area

• New listings: 104 | -17%
• Median sales price: $318,000 | +4%
• Pending sales: 57 | -19%
• Days on market: 11 | +120%
• Inventory: 159 | +6%
• Months’ supply: 3.6 | +24%

Little Falls area

• New listings: 21 | -25%
• Median sales price: $278,750 | +14%
• Pending sales: 21 | -19%
• Days on market: 7 | -13%
• Inventory: 19 | -30%
• Months’ supply: 1.10 | -8%

Southwest Minnesota area

• New listings: 133 | +3%
• Median sales price: $167,000 | -7%
• Pending sales: 103 | -5%
• Days on market: 53 | +20%
• Months’ supply: 2.90 | +9%

Headwaters area

• New listings: 173 | +2%
• Median sales price: $264,800 | -2%
• Pending sales: 117 | +1%
• Days on market: 44 | +16%
• Months’ supply: 3.40 | +36%