June 2024 Market Insights

Key insights from May 2024 (compared to May 2023)*

• New listings: 6,979 | +3.1%
• Median sales price: $385,000 | +4.1%
• Closed sales: 4,514 | +10.5%
• Pending sales: 4,675 | -5.0%
• Days on market: 40 | +5.3%
• Inventory: 8,614 | +15.7%
• Months’ supply: 2.3 | +21.1%

The highlights

• Nationally, May marks the second month in a row that existing home sales have fallen, with new home sales also decreasing.
• Increased prices, higher borrowing rates and lower inventory levels are mostly to blame for the decrease in pending sales.
• Home prices continue to rise (4.1%), despite an increase in inventory (15.7%).
• The Twin Cities now has a 2.3 months supply of homes; an increase of 21.1%.

Home prices continue to climb. In the Twin Cities, there’s been a 4.1% increase to a median sales price of $385,000. Nationally, it’s grown 5.7% to $407,600. These increased prices, combined with higher borrowing costs, have led buyers to take a step back from their home search in hopes of a more buyer-friendly market and increased inventory in the future. Pending sales were down 5%; existing sales fell for the second month in a row and new home sales fell 4.7%.

One positive note is that new listings in the Twin Cities region have continued to grow with a 15.7% increase (this is part of the reason new homes sales have seen a decrease). Nationally, inventory has grown 9% month-over-month and 16.3% year-over-year. This has resulted in the months’ supply of homes in the Twin Cities rising to 2.3 months and nationally to 3.5 months. Additionally, days on market has gained some traction (+5.3%) and now sits at 40 days.

These are encouraging signs for buyers, who may have been pausing their homebuying journey due to too few options, rising home prices and a fast seller’s market. Increasing inventory should help alleviate the growth of median sales price and help shift the market to become more balanced.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.6% (as of April 2024)
• Average rates for 30-year conforming mortgage 6.95**

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 May 2024.

**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: 136 | -17%
• Avg. sales price: $348,934 | -4%
• Pending sales: 108 | +6%
• Days on market: 50 | +22%
• Inventory: 230 | +39%
• Months’ supply: 2.90 | +26%

Brainerd area

• New listings: 753 | -4%
• Avg. sales price: $358,320 | -8%
• Closed sales: 444 | +22%
• Days on market: 47 | +21%
• Inventory: 1,308 | +40%
• Months’ supply: 3.30 | +38%

Lake Superior area

• New listings: 387 | -11%
• Avg. sales price: $311,949 | +1%
• Pending sales: 298 | +35%
• Days on market: 34 | +21%
• Inventory: 727 | +22%
• Months’ supply: 2.70 | +17%

Southeast Minnesota area

• New listings: 591 | -6%
• Avg. sales price: $330,710 | +1%
• Closed sales: 477 | +0%
• Days on market: 35 | -15%
• Inventory: 854 | +26%
• Months’ supply: 2.00 | +25%

St. Cloud area

• New listings: 190 | +1%
• Avg. sales price: $299,992 | -5%
• Pending sales: 154 | +3%
• Days on market: 34 | +3%
• Inventory: 207 | +15%
• Months’ supply: 1.80 | +13%

Mankato area

• New listings: 212 | -4%
• Avg. sales price: $310,925 | +4%
• Pending sales: 177 | No change
• Days on market: 80 | +16%
• Inventory: 314 | +11%
• Months’ supply: 2.30 | +21%

Northwestern Wisconsin area

• New listings: 656 | +6%
• Avg. sales price: $360,249 | +11%
• Closed sales: 423 | +21%
• Days on market: 76 | -11%
• Inventory: 1,607 | +22%
• Months’ supply: 4.50 | +32%

West Central Minnesota area

• New listings: 327 | -5%
• Avg. sales price: $217,647 | +7%
• Pending sales: 242 | -9%
• Days on market: 61 | +36%
• Inventory: 573 | +22%
• Months’ supply: 2.70 | +23%

Bemidji area

• New listings: 83 | -13%
• Median sales price: $283,000 | -1%
• Pending sales: 59 | -3%
• Inventory: 148 | +31%
• Months’ supply: 3.20 | +28%

Leech Lake and surrounding area

• New listings: 107 | +8%
• Median sales price: $319,000 | +18%
• Pending sales: 61 | +20%
• Days on market: 17 | +6%
• Inventory: 177 | +40%
• Months’ supply: 4.00 | +43%

Little Falls area

• New listings: 24 | -23%
• Median sales price: $255,000 | -2%
• Pending sales: 22 | -15%
• Days on market: 14 | +27%
• Inventory: 26 | +30%
• Months’ supply: 1.40 | +27%

Southwest Minnesota area

• New listings: 117 | -6%
• Median sales price: $195,500 | +18%
• Pending sales: 82 | -6%
• Days on market: 65 | +5%
• Months’ supply: 3.10 | +19%

Headwaters area

• New listings: 153 | -9%
• Median sales price: $237,240 | -14%
• Pending sales: 105 | +3%
• Days on market: 73 | +55%
• Months’ supply: 3.90 | +39%