November 2023 Market Insights

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

• New listings: 5,014 | -1.1%
• Median sales price: $387,095 | +3.3%
• Closed sales: 3,778 | -7.9%
• Pending sales: 3,470 | -4.9%
• Days on market: 37 | +2.8%
• Inventory: 8,630 | -7.7%
• Months’ supply: 2.3 | +15%

The highlights

• Months’ supply of homes was up 15% (to 2.3 months) from last month
• New home sales continue to grow with a 12.3% increase from last month as existing homes sales fell to a 13-year low
• Housing inventory was up from last month (+2.7%), though lower than last year
• The median sales price increased 2.4% to $365,000

The big story in October was interest rates, which briefly broke 8% for a 30-year fixed rate mortgage; the highest level since 2000. Unsurprisingly, that caused buyers to take a pause, resulting in a decrease in sales activity on both sides of the transaction: buyers, who were already dealing with low supply and rising prices, and sellers, who were loath to give up their historically low mortgage rates. The average sales price increased 2.4% to $365,000 and sellers received 98.4% of their asking price, thanks to low supply and high demand.

On the new construction front, sales of new homes continue to grow with a 31.6% increase (33.9% nationally) compared to the same period last year. Nationally, this is the highest level of new construction sales since February 2022. With the lack of existing home inventory, new construction has been picking up some of the housing supply slack and is up 20.3% from last year.

While home inventory was down 7.7% overall in October, the dip in sales helped encourage a 15% increase in months’ supply of homes for sale, bringing it to a 2.3 months. This is a promising sign that the market is moving—albeit slowly—toward more balance (4-6 months).

Insights according to property type, price point and location:

• Townhomes showed the strongest sales: +6.5%
  • The townhome segment also showed the highest increase in sales price, which rose 7.0% to $305,000. In general, the overall median sales price only went up 1.4% to $365,000.
• Condo sales: - 2.3%
• Single family sales: - 7.8%
• Homes under $500,000: - 6.4%
• Homes over $500,000: + 2.7%
• Homes between $250K-$350K sold the quickest in 33 days

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.7% (as of September 2023)
• Average rates for 30-year conforming mortgage 7.29%**

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: 90 | +25%
• Avg. sales price: $357,411 | +12%
• Pending sales: 67 | -3%
• Days on market: 38 | No change
• Inventory: 209 | +27%
• Months’ supply: 2.90 | +45%

Brainerd area

• New listings: 454 | +7%
• Avg. sales price: $375,518 | +2%
• Closed sales: 429 | -9%
• Days on market: 43 | +13%
• Inventory: 1,167 | +18%
• Months’ supply: 3.20 | +45%

Lake Superior area

• New listings: 294 | +8%
• Avg. sales price: $308,811 | +7%
• Pending sales: 297 | -16%
• Days on market: 29 | +4%
• Inventory: 833 | +22%
• Months’ supply: 3.40 | +48%

Southeast Minnesota area

• New listings: 501 | +20%
• Avg. sales price: $318,283 | +2%
• Closed sales: 439 | +1%
• Days on market: 36 | -5%
• Inventory: 1,008 | +11%
• Months’ supply: 2.40 | +33%

St. Cloud area

• New listings: 135 | +2%
• Avg. sales price: $279,114 | +1%
• Pending sales: 120 | -6%
• Days on market: 33 | +22%
• Inventory: 231 | +11%
• Months’ supply: 2.20 | +47%

Mankato area

• New listings: 197 | +22%
• Avg. sales price: $271,549 | -3%
• Pending sales: 121 | -11%
• Days on market: 88 | +19%
• Inventory: 406 | +40%
• Months’ supply: 3.00 | +76%

Northwestern Wisconsin area

• New listings: 453 | +14%
• Avg. sales price: $303,692 | +11%
• Closed sales: 431 | -1%
• Days on market: 76 | +7%
• Inventory: 1,388 | +7%
• Months’ supply: 3.80 | +41%

West Central Minnesota area

• New listings: 275 | +24%
• Avg. sales price: $205,747 | +8%
• Pending sales: 225 | +10%
• Days on market: 46 | +2%
• Inventory: 678 | +26%
• Months’ supply: 3.30 | +50%

Bemidji area

• New listings: 47 | +9%
• Median sales price: $265,000 | +8%
• Pending sales: 38 | -21%
• Inventory: 142 | +34%
• Months’ supply: 3.40 | +70%

Leech Lake and surrounding area

• New listings: 50 | +43%
• Median sales price: $323,000 | -8%
• Pending sales: 34 | -24%
• Days on market: 16 | +33%
• Inventory: 153 | +34%
• Months’ supply: 3.70 | +61%

Little Falls area

• New listings: 24 | +14%
• Median sales price: $270,850 | +43%
• Pending sales: 21 | +17%
• Days on market: 17 | +13%
• Inventory: 36 | +29%
• Months’ supply: 1.90 | +36%

Southwest Minnesota area

• New listings: 107 | +29%
• Median sales price: $165,000 | -8%
• Pending sales: 84 | +17%
• Days on market: 53 | +4%
• Months’ supply: 3.50 | +52%

Headwaters area

• New listings: 98 | +15%
• Median sales price: $245,000 | -3%
• Pending sales: 82 | -11%
• Days on market: 51 | +21%
• Months’ supply: 3.80 | +46%