September 2024 Market Insights

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

• New listings: 5,940 | -2%
• Median sales price: $389,700 | +3%
• Closed sales: 4,498 | -10.9%
• Pending sales: 4,017 | -10%
• Days on market: 40 | +25%
• Inventory: 9,712 | +20%
• Months’ supply: 2.6 | +18%

The highlights

• Existing home sales increased 1.3% month-over-month for the first time in five months.
• While new listings have decreased (-3.3%) locally, inventory across the nation has grown to create a 4-month supply of homes.
• Lower mortgage rates and increased inventory should give buyers confidence, while increased selling prices could motivate sellers to list.

For the first time in five months, we’ve seen an increase in existing home sales. While the 1.3% rise in sales month-over-month may seem meager, it’s a welcome disruption in the downward trend we’ve experienced for nearly half a year. Lowered mortgage rates and a larger supply of inventory are to thank for this increase that has surpassed the expectations of economists.

However, this past month showed a 3.3% decrease in new listings in the Twin Cities region, and pending sales were also down 10.2%. Prices continue to rise with the median sales price up 2.6%, making August the 13^th consecutive month of annual price increases.

The good news is that some buyer indicators showed improvement with days on market up 21.2% to 40 days and months’ supply of homes up by 13.0% to 2.6 months. Nationally, inventory is slightly up with an 0.8% increase and 4.0-month supply of homes. New home inventory saw their highest level since May 2023 after three months of decline. Single family home inventory grew 10.6% month-over month, adding to inventory levels and proving to be the strongest home sales.

Despite inventory levels being up nearly 20% compared to last year, buyer demand continues to outpace seller supply. If mortgage rates continue to decline and highly-sought after single-family detached homes continue to be listed (both new construction and existing), it’s expected that the market will continue to work toward becoming more balanced.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.8% (as of July 2024)
• Average rates for 30-year conforming mortgage 6.09%**

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 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: 124 | -17%
• Avg. sales price: $418,610 | +16%
• Pending sales: 108 | -6%
• Days on market: 48 | +41%
• Inventory: 276 | +25%
• Months’ supply: 3.60 | +16%

Brainerd area

• New listings: 719 | -2%
• Avg. sales price: $380,976 | +5%
• Closed sales: 532 | -9%
• Days on market: 43 | +23%
• Inventory: 1,562 | +26%
• Months’ supply: 4.20 | +27%

Lake Superior area

• New listings: 446 | +2%
• Avg. sales price: $346,398 | +11%
• Pending sales: 375 | -7%
• Days on market: 27 | +29%
• Inventory: 944 | +11%
• Months’ supply: 3.70 | +9%

Southeast Minnesota area

• New listings: 615 | -8%
• Avg. sales price: $343,915 | +7%
• Closed sales: 480 | +3%
• Days on market: 37 | +19%
• Inventory: 1,090 | +15%
• Months’ supply: 2.60 | +13%

St. Cloud area

• New listings: 161 | +18%
• Avg. sales price: $323,494 | +4%
• Pending sales: 123 | +1%
• Days on market: 34 | +70%
• Inventory: 268 | +30%
• Months’ supply: 2.40 | +26%

Mankato area

• New listings: 170 | -21%
• Avg. sales price: $289,872 | Minimal
• Pending sales: 144 | -5%
• Days on market: 76 | -5%
• Inventory: 359 | +3%
• Months’ supply: 2.60 | +4%

Northwestern Wisconsin area

• New listings: 598 | +9%
• Avg. sales price: $351,833 | +5%
• Closed sales: 503 | +1%
• Days on market: 75 | +6%
• Inventory: 1,661 | +7%
• Months’ supply: 4.60 | +48%

West Central Minnesota area

• New listings: 310 | -12%
• Avg. sales price: $244,630 | +6%
• Pending sales: 244 | -11%
• Days on market: 54 | +17%
• Inventory: 712 | +9%
• Months’ supply: 3.40 | +3%

Bemidji area

• New listings: 100 | +10%
• Median sales price: $275,000 | +15%
• Pending sales: 38 | -27%
• Inventory: 215 | +29%
• Months’ supply: 5.10 | +31%

Leech Lake and surrounding area

• New listings: 85 | -3%
• Median sales price: $379,000 | +8%
• Pending sales: 74 | -10%
• Days on market: 22 | +38%
• Inventory: 223 | +41%
• Months’ supply: 5.40 | +46%

Little Falls area

• New listings: 33 | -23%
• Median sales price: $286,000 | +43%
• Pending sales: 24 | -23%
• Days on market: 10 | +67%
• Inventory: 40 | -7%
• Months’ supply: 2.30 | -4%

Southwest Minnesota area

• New listings: 110 | -6%
• Median sales price: $180,250 | +5%
• Pending sales: 104 | -7%
• Days on market: 56 | +6%
• Inventory: 258 | +23%
• Months’ supply: 4.30 | +23%

Headwaters area

• New listings: 157 | +7%
• Median sales price: $279,500 | +7%
• Pending sales: 94 | -23%
• Days on market: 47 | +27%
• Inventory: 287 | +37%
• Months’ supply: 5.40 | +35%