September 2023 Market Insights

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

• New listings: 6,077 | -2.8%
• Median sales price: $380,000 | +2.7%
• Closed sales: 4,983 | -11.6%
• Pending sales: 4,468 | -10.5%
• Days on market: 32 | +18.5%
• Inventory: 8,111 | -11.8%
• Months’ supply: 2.2 | +15.8%

Prices inched up; Sales declined

The highlights

• The median sales price rose 2.7% to $380,000
• Days on market increased to 32 days on average
• Sellers received offers at 100% of their asking price
• Buyer and seller activity was down from last year
• Months’ supply inched up to 2.2 months

A closer look

The real estate market continued to put the squeeze on buyers in August as elevated interest rates and lack of housing supply led to fewer sales and higher home prices.

Freddie Mac reported that mortgage interest rates on 30-year loans hit a two-decade high in August, causing some would-be sellers to wait it out until rates come down…and furthering the impact on buyers competing for homes, which in turn pushed sales prices up slightly.

Many industry experts predict that rates will remain around 7% or so through the end of the year. However, those same experts will be watching what the Fed does with interest rates in pursuit of lowering inflation, which will ultimately determine what happens in the broader marketplace.

While it continues to be a seller’s market, Realtors caution sellers to be realistic with market times, which have increased to about a month on average. Homes that are in good condition and priced well will continue to move quickly and for their asking price.

New construction continues to be a bright spot in the market, with new-home sales up 31.5% nationally over last year—and up 47.4% in the Midwest. Make sure to plan your Fall Parade of Homes tour with your Realtor to see if a new home might be right for you.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.1% (as of July 2023)
• Average rates for 30-year conforming mortgage 7.18%**

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 August 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: 149| +37%
• Avg. sales price: $362,100 | +19%
• Pending sales: 115 | -7%
• Days on market: 34 | +26%
• Inventory: 221 | +28%
• Months’ supply: 3.10 | +63%

Brainerd area

• New listings: 730 | +5%
• Avg. sales price: $363,225 | No change
• Closed sales: 587 | -7%
• Days on market: 35 | +21%
• Inventory: 1,243 | +9%
• Months’ supply: 3.30 | +38%

Lake Superior area

• New listings: 439 | -3%
• Avg. sales price: $313,316 | +12%
• Pending sales: 404 | -8%
• Days on market: 21 | -5%
• Inventory: 851| +11%
• Months’ supply: 3.40 | +36%

Southeast Minnesota area

• New listings: 667 | +5%
• Avg. sales price: $321,191 | +4%
• Closed sales: 466 | -23%
• Days on market: 31 | -3%
• Inventory: 948 | +9%
• Months’ supply: 2.30 | +35%

St. Cloud area

• New listings: 137 | -15%
• Avg. sales price: 311,005 | +8%
• Pending sales: 122 | -27%
• Days on market: 20 | -29%
• Inventory: 206 | +2%
• Months’ supply: 1.90 | +36%

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: 551 | -7%
• Avg. sales price: $335,097 | +12%
• Closed sales: 497 | -12%
• Days on market: 71 | +11%
• Inventory: 1,558 | -4%
• Months’ supply: 3.10 | -3%

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: 91 | +21%
• Median sales price: $239,500 | -10%
• Pending sales: 52 | -20%
• Inventory: 17 | +89%
• Months’ supply: 3.90 | +50%

Leech Lake and surrounding area

• New listings: 88 | +14%
• Median sales price: $349,900 | No change
• Pending sales: 82 | -8%
• Days on market: 16 | -11%
• Inventory: 158 | -2%
• Months’ supply: 3.70 | +19%

Little Falls area

• New listings: 20 | -33%
• Median sales price: $325,000 | +48%
• Pending sales: 16 | -24%
• Days on market: 6 | -40%
• Inventory: 13 | -38%
• Months’ supply: 0.70 | -22%

Southwest Minnesota area

• New listings: 117| -1%
• Median sales price: $171,000 | +10%
• Pending sales: 112 | -10%
• Days on market: 53 | +20%
• Months’ supply: 3.50 | +40%

Headwaters area

• New listings: 147 | +14%
• Median sales price: $260,000 | -2%
• Pending sales: 122 | -1%
• Days on market: 37 | +23%
• Months’ supply: 4.00 | +38%