November 2022 Market Insights

Key insights from October 2022 (compared to October 2021)*

• New listings: 5,019 | -19.7%
• Median sales price: $356,002 | +4.7%
• Closed sales: 4,035 | -33.5%
• Pending sales: 3,611 | -37.7%
• Days on market: 36 | +33.3%
• Inventory: 8,756 | +5.1%
• Months’ supply: 1.9 | +26.7%

Supply constraints put pressure on Twin Cities real estate pricing

The long and the short of it

• Median pricing again rose year-over-year, rising 4.7% to $356,002.
• The supply of homes for sale jumped significantly compared to last year, with a 1.9-month supply available.
• The market continues to adjust to new underlying dynamics, with fewer listings and sales

New listings and closed sales continued to drop off in the 13-county Twin Cities metro area in October, with both down 19% or more from 2022’s record-setting beginning of winter. But the reduction didn’t cool off median pricing.

There were 5,019 new listings in October, a 19.7% drop from the same month last year. That’s the fewest new homes we’ve seen hit the market since at least 2012, as sellers continue to adjust to high mortgage rates and the difficulty of finding their next home once they do sell.

Closed sales fell even more, with just 4,035 homes changing hands in October, down 33.5% from a year ago. That number is also one of the lowest our market has seen in the past decade.

One primary factor stifling activity is rising interest rates. The average rate for a 30-year mortgage eclipsed 7.0% for the first time since 2002 this month, according to Freddie Mac. Higher interest rates reduce buyers’ budgets, meaning they may have fewer options to choose from, whether they’re buying their first or next home.

Low inventory also remains, but that’s been a theme over the past several years. There are 8,756 homes for sale, up 5.1% from the same month last year. That represents a 1.9-month supply of homes, a number that still squarely favors sellers.

That dynamic didn’t stop buyers from moving quickly and aggressively over the past couple of years, but the combination of both inventory and mortgage rates seems to have caused some to hesitate before making their next move.

The typical home sold in October after spending 36 days on the market, up from last October’s average of 27 days. That 33.3% increase may seem dramatic at first, but it’s still down significantly from historical levels. Even as recently as 2020, homes were spending two months or more on the market before selling.

The slowed market has caused a bit of a dip in pricing, with a median sales price of $356,002 representing a $6,000 drop from a month ago. But that’s still 4.7% higher than October 2021, which at the time was a record.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 1.9% (as of September 2022)
• Average rates for 30-year conforming mortgage 7.08%**
• Interest rates hadn’t been at 7% or higher since 2002, according to Freddie Mac.

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 2022.

**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: 72 | -16%
• Avg. sales price: $318,842 | +8%
• Pending sales: 69 | -44%
• Days on market: 38 | +36%
• Inventory: 164 | -2%
• Months’ supply: 2.0 | +33%

Brainerd area

• New listings: 425 | -10%
• Avg. sales price: $366,500 | +8%
• Closed sales: 470 | -28%
• Days on market: 38 | +19%
• Inventory: 990 | +20%
• Months’ supply: 2.2 | +29%

Lake Superior area

• New listings: 273 | -18%
• Avg. sales price: $288,052 | +10%
• Pending sales: 354 | -15%
• Days on market: 28 | +8%
• Inventory: 681| +17%
• Months’ supply: 2.3 | +44%

Southeast Minnesota area

• New listings: 416 | -28%
• Avg. sales price: $312,254 | +10%
• Closed sales: 436 | -29%
• Days on market: 38 | +46%
• Inventory: 907 | +11%
• Months’ supply: 1.8 | +20%

St. Cloud area

• New listings: 133 | -13%
• Avg. sales price: $276,507 | +5%
• Pending sales: 127 | -17%
• Days on market: 27 | +17%
• Inventory: 209 | +1%
• Months’ supply: 1.5 | +25%

Mankato area

• New listings: 161 | -18%
• Avg. sales price: $279,252 | +6%
• Pending sales: 136 | -21%
• Days on market: 74 | +10%
• Inventory: 291 | +1%
• Months’ supply: 1.7 | +6%

Northwestern Wisconsin area

• New listings: 397 | -17%
• Avg. sales price: $274,459 | +5%
• Closed sales: 437 | -27%
• Days on market: 71 | -4%
• Inventory: 1,298 | -19%
• Months’ supply: 2.7 | -13%

West Central Minnesota area

• New listings: 222 | -16%
• Avg. sales price: $190,356 | -4%
• Pending sales: 205 | -17%
• Days on market: 45 | +7%
• Inventory: 537 | -8%
• Months’ supply: 2.2 | +5%

Bemidji area

• New listings: 43 | -23%
• Median sales price: $245,000 | -4%
• Pending sales: 48 | -31%
• Inventory: 106 | -2%
• Months’ supply: 2.0 | +11%

Leech Lake and surrounding area

• New listings: 35 | -24%
• Median sales price: $349,900 | +8%
• Pending sales: 45 | -17%
• Days on market: 12 | -43%
• Inventory: 114 | +13%
• Months’ supply: 2.3 | +28%

Little Falls area

• New listings: 21 | -22%
• Median sales price: $190,000 | -9%
• Pending sales: 18 | -28%
• Days on market: 15 | +67%
• Inventory: 28 | -10%
• Months’ supply: 1.4 | +8%

Southwest Minnesota area

• New listings: 83 | -39%
• Median sales price: $179,500 | -12%
• Pending sales: 72 | -42%
• Days on market: 51 | +70%
• Months’ supply: 2.3 | +28%

Headwaters area

• New listings: 85 | -3%
• Median sales price: $252,500 | -2%
• Pending sales: 92 | -9%
• Days on market: 42 | +24%
• Months’ supply: 2.6 | +24%