October 2023 Market Insights

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

• New listings: 5,663 | -6.4%
• Median sales price: $370,305 | +2.2%
• Closed sales: 4,126 | -17.1%
• Pending sales: 3,686 | -7.3%
• Days on market: 34 | +6.3%
• Inventory: 8,704 | -9.4%
• Months’ supply: 2.3 | +15%

The highlights

• Mortgage rates are slowing down sellers (who are also move-up buyers), causing an inventory shortage
• Buyer and seller activity remains below this time last year
• Sellers continue to receive strong offers—99.3% of list price in an average of 34 days

As has been the trend this year, housing inventory remains low. Though the Fed left rates unchanged for September, the continued high interest rates caused home sellers and buyers to pause. Homeowners continued to put off moves whenever possible, which in turn caused a low inventory of existing homes for sale. Compounding the issue is a lack of downpayment funds among first-time homebuyers and younger generations, who have had to put off buying. New construction offers one hopeful solution to the inventory shortage with sales of new homes trending up.

As Boomers continue to age, many will be looking to downsize, which could help alleviate the housing shortage and allow Gen X and older Millennials opportunities to move-up so younger Millennials and Gen Z can finally buy in.

Overall, sellers continued to receive strong offers. The inventory shortage created stiff competition for buyers resulting in sellers attracting 99.3% of their list price in an average of 34 days.

As always, market dynamics differ according to home type, price point and location. A few items of note:

• New construction sales: +44.8%
• Existing homes sales: -12%
• Homes under $500,000: -10.1%
• Homes over $500,000: +2.8%
• Cities with the highest sales gains: St. Anthony, Orono, Richfield and Golden Valley

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.2% (as of August 2023)
• Average rates for 30-year conforming mortgage 7.63%**

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 September 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: 103 | +2%
• Avg. sales price: $332,442 | -9%
• Pending sales: 89 | +2%
• Days on market: 34 | -11%
• Inventory: 220 | +25%
• Months’ supply: 3.10 | +55%

Brainerd area

• New listings: 539 | -9%
• Avg. sales price: $359,126 | -4%
• Closed sales: 517 | -18%
• Days on market: 34 | +3%
• Inventory: 1,270 | +14%
• Months’ supply: 3.40 | +42%

Lake Superior area

• New listings: 365 | -1%
• Avg. sales price: $324,793 | +15%
• Pending sales: 344 | -17%
• Days on market: 27 | +13%
• Inventory: 880 | +17%
• Months’ supply: 3.60 | +44%

Southeast Minnesota area

• New listings: 505 | -11%
• Avg. sales price: $295,086 | +2%
• Closed sales: 498 | -11%
• Days on market: 35 | +13%
• Inventory: 983 | +4%
• Months’ supply: 2.40 | +26%

St. Cloud area

• New listings: 140 | -3%
• Avg. sales price: $297,696 | +10%
• Pending sales: 104 | -6%
• Days on market: 28 | +4%
• Inventory: 236 | +6%
• Months’ supply: 2.20 | +38%

Mankato area

• New listings: 214 | +12%
• Avg. sales price: $290,673 | +6%
• Pending sales: 152 | -6%
• Days on market: 80 | +25%
• Inventory: 347 | +11%
• Months’ supply: 2.50 | +39%

Northwestern Wisconsin area

• New listings: 455 | -3%
• Avg. sales price: $330,756 | +9%
• Closed sales: 442 | -18%
• Days on market: 70 | +1%
• Inventory: 1,438 | -4%
• Months’ supply: 3.80 | +23%

West Central Minnesota area

• New listings: 352 | +6%
• Avg. sales price: $230,419 | +14%
• Pending sales: 273 | -20%
• Days on market: 46 | +31%
• Inventory: 654 | +16%
• Months’ supply: 3.30 | +50%

Bemidji area

• New listings: 49 | -6%
• Median sales price: $286,000 | +14%
• Pending sales: 37 | -27%
• Inventory: 153 | +23%
• Months’ supply: 3.70 | +61%

Leech Lake and surrounding area

• New listings: 70 | -9%
• Median sales price: $342,000 | +18%
• Pending sales: 52 | -21%
• Days on market: 18 | -33%
• Inventory: 161 | +15%
• Months’ supply: 3.80 | +41%

Little Falls area

• New listings: 24 | -8%
• Median sales price: $271,250 | +23%
• Pending sales: 28 | +17%
• Days on market: 14 | +56%
• Inventory: 35 | +25%
• Months’ supply: 1.90 | +46%

Southwest Minnesota area

• New listings: 100 | +12%
• Median sales price: $152,500 | -11%
• Pending sales: 93 | No change
• Days on market: 53 | +23%
• Months’ supply: 3.50 | +46%

Headwaters area

• New listings: 108 | -9%
• Median sales price: $251,726 | +6%
• Pending sales: 86 | -16%
• Days on market: 39 | +18%
• Months’ supply: 4.00 | +38%