October 2024 Market Insights

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

• New listings: 5,956 | +4.2%
• Median sales price: $380,000 | +2.4%
• Closed sales: 3,739 | -11%
• Pending sales: 3,716 | +1.5%
• Days on market: 39 | +14.7%
• Inventory: 10,092 | +9%
• Months’ supply: 2.7 | +8%

The highlights

• Closed home sales have fallen nationwide with a 4.2% decline, but pending sales are on the rise.
• Median sale prices continue to rise and are hitting record highs ($416,700 nationally, $380,000 Twin Cities region).
• Inventory levels are growing locally with an increase in new listings for a 2.7 month supply of homes.
• Increased inventory and lower mortgage rates are predicted to increase sales in the months ahead.

Home sales across the nation were down 4.2% from this same time last year and down 11% in the Twin Cities 16-county metro area. However, pending sales ticked up slightly as consumers took advantage of lower interest rates.

Slower home sales are due in part to the record-setting home prices. According to data from NorthstarMLS and reported by the Minneapolis Area REALTORS (MAR), the latest-measured median sales price in the Twin Cities has risen 2.4% to $380,000. Nationally, the median sales price was $416,700—a 3.1% increase from last year. This is because sellers have had more leverage with lower inventory, but this is not expected to keep buyers from the market for long.

MAR reports that incomes are rising faster than home prices, and households have been getting the chance in the last few months for their earnings to catch up with rising listing prices. Plus, new listings in the Twin Cities region increased by 4.2% with inventory levels going up 9%, giving buyers more choices.

The increase in listings, in addition to a lack of sales, has led to an 8% increase in months’ supply of homes to 2.7 months. With more choices and less competition, prices and lower interest rates could start to become more affordable and lead to more sales.

As the number of homes on the market continues to grow, there is optimism in the industry. NAR chief economist Lawrence Yun said that he believes home sales will improve in the months ahead with lower mortgage rates and increased inventory options, leading to a more balanced housing market.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.9% (as of August 2024)
• Average rates for 30-year conforming mortgage 6.32%**

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 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: 107 | +4%
• Avg. sales price: $356,331 | +7%
• Pending sales: 84 | -6%
• Days on market: 53 | +56%
• Inventory: 274 | +25%
• Months’ supply: 3.60 | +16%

Brainerd area

• New listings: 608 | +13%
• Avg. sales price: $409,271 | +14%
• Closed sales: 448 | -13%
• Days on market: 51 | +50%
• Inventory: 1,565 | +23%
• Months’ supply: 4.20 | +24%

Lake Superior area

• New listings: 369 | +1%
• Avg. sales price: $332,620 | +2%
• Pending sales: 296 | -14%
• Days on market: 26 | -4%
• Inventory: 944 | +7%
• Months’ supply: 3.60 | No change

Southeast Minnesota area

• New listings: 538 | +7%
• Avg. sales price: $316,566 | +7%
• Closed sales: 424 | -15%
• Days on market: 40 | +14%
• Inventory: 1,144 | +16%
• Months’ supply: 2.70 | +13%

St. Cloud area

• New listings: 152 | +9%
• Avg. sales price: $306,526 | +3%
• Pending sales: 107 | +3%
• Days on market: 37 | +32%
• Inventory: 152 | +9%
• Months’ supply: 2.70 | +23%

Mankato area

• New listings: 209 | +14%
• Avg. sales price: $288,650 | -6%
• Pending sales: 127 | +3%
• Days on market: 83 | +19%
• Inventory: 405 | +6%
• Months’ supply: 3.00 | +7%

Northwestern Wisconsin area

• New listings: 541 | +19%
• Avg. sales price: $335,803 | +2%
• Closed sales: 418 | -5%
• Days on market: 81 | +16%
• Inventory: 1,756 | +22%
• Months’ supply: 4.90 | +29%

West Central Minnesota area

• New listings: 304 | +3%
• Avg. sales price: $264,669 | +29%
• Pending sales: 218 | -14%
• Days on market: 54 | +23%
• Inventory: 767 | +15%
• Months’ supply: 3.80 | +15%

Bemidji area

• New listings: 67 | +37%
• Median sales price: $262,000 | -8%
• Pending sales: 47 | +27%
• Inventory: 211 | +38%
• Months’ supply: 4.90 | +32%

Leech Lake and surrounding area

• New listings: 57 | -19%
• Median sales price: $310,500 | -9%
• Pending sales: 42 | -19%
• Days on market: 38 | +111%
• Inventory: 218 | +35%
• Months’ supply: 5.40 | +42%

Little Falls area

• New listings: 19 | -21%
• Median sales price: $255,000 | -6%
• Pending sales: 25 | -11%
• Days on market: 18 | +29%
• Inventory: 30 | -14%
• Months’ supply: 1.70 | -11%

Southwest Minnesota area

• New listings: 88 | -12%
• Median sales price: $182,000 | +19%
• Pending sales: 80 | -14%
• Days on market: 55 | +4%
• Inventory: 265 | +24%
• Months’ supply: 4.40 | +26%

Headwaters area

• New listings: 102 | -6%
• Median sales price: $269,900 | +7%
• Pending sales: 99 | +15%
• Days on market: 65 | +67%
• Inventory: 294 | +37%
• Months’ supply: 5.10 | +27%