May 2024 Market Insights

Market Insights—May 2024

• Key insights from Apr. 2024 (compared to Apr. 2023)*
• New listings: 6,347 | +20.9%
• Median sales price: $385,250 | +4.1%
• Closed sales: 3,806 | +13.8%
• Pending sales: 4,334 | +8.5%
• Days on market: 45 | -2.2%
• Inventory: 7,705 | +14.1%
• Months’ supply: 2.0 | +17.6%

The highlights

• Sellers are utilizing the warmer weather to list their homes, leading to a 20.9% increase in new listings.
• While existing home sales dropped 4.3%, new home sales rose 8.8% month-over-month.
• The median sales price continued to rise with days on market falling to 45 days.
• A spring surge in sellers and months’ supply are encouraging signs that give buyers confidence.

Spring weather seems to have encouraged some sellers to come out of hibernation and put their homes on the market. New listings in the Twin Cities area increased 20.9%, with inventory levels gaining 14.1%.

This has led to a 2 months’ supply of homes, which is still far from the balanced market rate of 5-7 months, but shows a 17.6% rise. This was an encouraging sign to buyers, who helped pending sales increase 8.5% and days on market decrease by 2.2% to 45 days.

These are positive trends, but U.S. existing home sales dropped 4.3% month-over-month –falling from its one-year high. (Meanwhile, U.S. sales of new residential homes made a come-back from last month’s dip by gaining 8.8% month-over-month.) The median sales price also continued to rise with a 4.1% increase to $385,250 in the region. That, coupled with increased mortgage rates topping 7%, has cooled buyer fervor.

In a market that’s strapped for options and quick to sell, buyers need to be fast on their feet in order to close on a property. Still, buyers can be encouraged by the increase in inventory that has come with spring.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.0% (as of March 2024)
• Average rates for 30-year conforming mortgage 7.02**

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 April 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: 139 | +67%
• Avg. sales price: $344,440 | +15%
• Pending sales: 104 | +86%
• Days on market: 47 | -2%
• Inventory: 206 | +78%
• Months’ supply: 2.70 | +69%

Brainerd area

• New listings: 627 | +40%
• Avg. sales price: $379,064 | +11%
• Closed sales: 361 | +30%
• Days on market: 59 | -2%
• Inventory: 1,112 | +57%
• Months’ supply: 2.80 | +56%

Lake Superior area

• New listings: 373 | +50%
• Avg. sales price: $313,443 | +4%
• Pending sales: 221 | +50%
• Days on market: 44 | +5%
• Inventory: 656 | +35%
• Months’ supply: 2.40 | +33%

Southeast Minnesota area

• New listings: 635 | +10%
• Avg. sales price: $332,441 | +13%
• Closed sales: 428 | +16%
• Days on market: 45 | -6%
• Inventory: 817 | +25%
• Months’ supply: 1.90 | +27%

St. Cloud area

• New listings: 152 | +21%
• Avg. sales price: $284,493 | +6%
• Pending sales: 138 | +3%
• Days on market: 44 | No change
• Inventory: 192 | +31%
• Months’ supply: 1.70 | +42%

Mankato area

• New listings: 208 | +3%
• Avg. sales price: $284,323 | Minimal
• Pending sales: 146 | +5%
• Days on market: 94 | +9%
• Inventory: 308 | +15%
• Months’ supply: 2.20 | +22%

Northwestern Wisconsin area

• New listings: 570 | +39%
• Avg. sales price: $308,165 | +2%
• Closed sales: 330 | +27%
• Days on market: 78 | -15%
• Inventory: 1,380 | +34%
• Months’ supply: 4.10 | +58%

West Central Minnesota area

• New listings: 283 | +11%
• Avg. sales price: $239,556 | +15%
• Pending sales: 224 | +1%
• Days on market: 63 | -7%
• Inventory: 523 | +32%
• Months’ supply: 2.40 | +26%

Bemidji area

• New listings: 73 | +16%
• Median sales price: $269,950 | +29%
• Pending sales: 54 | +35%
• Inventory: 126 | +33%
• Months’ supply: 2.70 | +29%

Leech Lake and surrounding area

• New listings: 63 | +50%
• Median sales price: $360,000 | +39%
• Pending sales: 39 | +63%
• Days on market: 28 | +133%
• Inventory: 144 | +76%
• Months’ supply: 3.30 | +83%

Little Falls area

• New listings: 26 | +30%
• Median sales price: $228,500 | -30%
• Pending sales: 14 | -13%
• Days on market: 7 | +17%
• Inventory: 24 | +85%
• Months’ supply: 1.30 | +86%

Southwest Minnesota area

• New listings: 104 | -6%
• Median sales price: $172,500 | +19%
• Pending sales: 87 | +5%
• Days on market: 62 | -2%
• Months’ supply: 2.90 | +26%

Headwaters area

• New listings: 124 | +41%
• Median sales price: $259,900 | +20%
• Pending sales: 87 | +38%
• Days on market: 78 | +10%
• Months’ supply: 3.50 | +59%