• The median sales price increased 2.7 percent to $389,900
• Signed purchase agreements fell 10.5 percent; new listings down 2.8 percent
• Sellers still getting strong offers at 100.0 percent of their list price

(September 15, 2023) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, home prices rose modestly in August. Both buyer and seller activity were lower compared to last year.

Sales & Prices

Pending home sales—or listings with accepted offers—were down 10.5 percent compared to last August. While those declines have moderated, it’s mostly due to comparing to a lower baseline last year as sales were slowing due to rising interest rates causing affordability challenges. Closed sales fell 11.6 percent overall, but townhomes had the smallest decline of any property type while new home sales rose an impressive 33.2 percent. Existing homeowners are choosing to stay put instead of trading up for a substantially higher monthly payment driven by rising prices and mortgage rates. That means builders listing new homes are benefiting from a shift in demand to new construction.

Home prices were down slightly in April and May, up slightly in June, and flat in July. The August median home price was up 2.7 percent from August 2022, up 20.0 percent from August 2021 and up 32.3 percent from August 2020. It’s not clear whether softening prices will continue, that depends on rates and demand. Of the homeowners who did sell their properties, they received an average of 100.0 percent of list price after 32 days on market. Market times were up 18.5 percent from last year, yet homes are still selling faster than in August of 2018 and 2019 and the same pace as 2020. “Not to oversimplify, but prices are rising because we still have a decent number of buyers competing for an insufficient number of homes,“ said Brianne Lawrence, President of the Saint Paul Area Association of REALTORS®. “Sellers of existing homes staying put forces some buyers to look at new homes or consider other more affordable property types such as townhomes, although affordability does vary within that segment.”

Listings and Inventory

In August, sellers listed only 2.8 percent fewer homes than last year, which is the smallest decline since May 2022 and a possible sign some existing supply could start to loosen up. Part of that is also due to a low baseline level. Inventory levels still slid 11.8 percent as of the most recent data. Sellers who locked in low interest rates are reluctant to give them up. “There’s always a certain level of activity in the market because of family changes, economic reasons or relocations to name a few,” said Jerry Moscowitz, President of Minneapolis Area REALTORS®. “But some less motivated buyers without that urgency are looking more cautiously at budgets and monthly payments.”

The balance between buyers and sellers has remained tight because both sales and listings have come down together. There were just over 8,000 active listings at the end of August; that needs to be closer to 20,000 to have a balanced market. At a still-low 2.2 months supply of inventory, buyers don’t have the upper hand some thought they would. Typically 4-6 months of supply are needed to reach a balanced market.

Location & Property Type

Market activity varies by area, price point and property type. New home sales rose 21.1 percent while existing home sales fell 13.9 percent. Single family sales were down 13.5 percent, condo sales decreased 9.0 percent and townhome sales were down just 3.2 percent. Sales in Minneapolis declined 17.0 percent while Saint Paul sales fell 11.5 percent. Cities such as Rogers, Otsego, Medina and Victoria saw the largest sales gains while Red Wing, East Bethel and Columbia Heights all had notably lower demand than last year.

For more information on weekly and monthly housing numbers visit www.mplsrealtor.com or www.spaar.com

August 2023 Housing Takeaways (compared to a year ago)

• Sellers listed 6,077 properties on the market, a 2.8 percent decrease from last August
• Buyers signed 4,468 purchase agreements, down 10.5 percent (4,983 closed sales, down 11.6 percent)
• Inventory levels shrank 11.8 percent to 8,111 units
• Month’s Supply of Inventory rose 15.8 percent to 2.2 months (4-6 months is balanced)
• The Median Sales Price was up 2.7 percent to $389,900
• Days on Market rose 18.5 percent to 32 days, on average (median of 15 days, unchanged from last year)
• Changes in Sales activity varied by market segment
  • Single family sales decreased 13.5 percent; condo sales were down 9.0 percent; townhouse sales fell 3.2 percent
  • Traditional sales declined 11.9 percent; foreclosure sales rose 178.9 percent to 53; short sales were flat at 7
  • Previously owned sales were down 13.9 percent; new construction sales increased 21.1 percent
  • Sales under $500,000 fell 13.6 percent; sales over $500,000 were down 4.3 percent

From The Skinny Blog.

• The median sales price remained flat at $375,000
• Signed purchase agreements fell 9.5 percent; new listings down 16.0 percent
• Sellers accepted offers for an average of 100.8 percent of their list price

(August 15, 2023) – According to new data from Minneapolis Area Realtors® and the Saint Paul Area Association of REALTORS®, home prices were flat in July. Both buyer and seller activity were lower compared to July 2022.

Sales & Prices

Home prices were down slightly in April and May, up slightly in June, and flat in July. April marked the first year-over-year price decline since February 2012. The typical home price is now up 7.1 percent from 2021, up 20.0 percent from 2020 and up 32.3 percent from 2019. But market dynamics always vary by price point, property type and location. Signed purchase agreements fell 9.5 percent from last July when buyer activity had already declined in the face of higher rates. Closings were down 21.4 percent but are a lagging indicator. As a more forward-looking indicator, pending sales are a more timely measure.

Of the sellers that did list and sell their properties, they received an average of 100.8 percent of list price after 29 days on market. This reflects a persistently tight supply picture. Homes are still selling faster than in July of 2018, 2019 and 2020. “It still surprises me how often I hear and read about a crash,” said Brianne Lawrence, President of the Saint Paul Area Association of REALTORS®. “Prices flattening out and homes spending longer on market combined with a possible downtick in rates could be just the medicine the doctor ordered for frustrated buyers.”

Listings and Inventory

July sellers listed 16.0 percent fewer homes on the MLS than last year. Inventory levels slid a similar 16.1 percent. Would-be sellers are faced with a unique decision: stay put in a home that no longer meets their needs or take their equity and embrace higher prices and rates until refinancing. Sellers are feeling the “golden handcuffs” and are reluctant to swap a 3.0 percent rate for 7.0 percent. “When is the best time to buy a home? When you’re ready,” said Jerry Moscowitz, President of Minneapolis Area Realtors®. “Focus on what you can’t change such as layout and location. Rooms can be repainted. Counters and appliances can be updated. Loans can be refinanced.”

Both supply and demand have come down in unison, meaning the balance between buyers and sellers remains tight. Inventory levels fell 16.1 percent in July to 7,842 active listings. The market still favors sellers, but not to the same degree as the last few years. The market has 2.1 months supply of inventory but typically 4-6 months of supply are needed to achieve a balanced market.

Location & Property Type

Market activity varies by area, price point and property type. New home sales rose 61.8 percent while existing home sales were down 13.5 percent. Single family sales fell 11.6 percent, condo sales were flat and townhome sales were down 4.5 percent. Sales in Minneapolis decreased 12.7 percent while Saint Paul sales fell 13.8 percent. Cities such as Mounds View, St. Anthony, Zumbrota and Vadnais Heights saw the largest sales gains while Hudson, Cambridge, New Richmond and Monticello all had notably lower demand than last year.

July 2023 Housing Takeaways (compared to a year ago)

• Sellers listed 5,823 properties on the market, a 16.0 percent decrease from last July
• Buyers signed 4,408 purchase agreements, down 9.5 percent (4,387 closed sales, down 21.4 percent)
• Inventory levels shrank 16.1 percent to 7,842 units
• Month’s Supply of Inventory rose 10.5 percent to 2.1 months (4-6 months is balanced)
• The Median Sales Price was flat at $375,000
• Days on Market rose 31.8 percent to 29 days, on average (median of 12 days, up 9.1 percent)
• Changes in Sales activity varied by market segment
  • Single family sales decreased 11.6 percent; condo sales were flat & townhouse sales fell 4.5 percent
  • Traditional sales declined 9.9 percent; foreclosure sales rose 95.0 percent to 39; short sales rose 233.3 percent to 10
  • Previously owned sales were down 13.5 percent; new construction sales increased 61.8 percent
  • Sales under $500,000 fell 11.7 percent; sales over $500,000 gained 1.3 percent

From The Skinny Blog.

• The median sales price was up 0.5 percent from last June to $382,000
• Signed purchase agreements fell 10.8 percent; new listings down 16.5 percent
• Sellers accepted offers for an average of 101.3 percent of their list price

(July 16, 2023) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, home prices rose slightly in June. Both buyer and seller activity were also lower compared to last June.

Sales & Prices

Prices were down slightly in April and May but up 0.5 percent in June. April marked the first year-over-year price decline since February 2012. Half of all homes sold for over $382,000. But as in April and May, sellers in June still accepted offers above list price despite a decline in sales—a dynamic that reflects the lack of supply despite rising mortgage rates. Sellers received offers at 101.3 percent of their asking price. Market times—while up—still reflect a relatively fast-paced market. Half the sales went under contract in under 12 days. And homes are still selling faster than in June 2018, 2019 and 2020.

“Some remain convinced of an impending crash, but we’re still not seeing it,” said Brianne Lawrence, President of the Saint Paul Area Association of REALTORS®. “Two months of prices softening around 1.0 percent before climbing again is more like a blip or pause than a downturn.” But the Fed-driven decline in demand persists. As we compare to slower months of 2022, the sales declines have moderated. Pending sales dipped 10.8 percent; closed sales fell 18.0 percent.

Listings and Inventory

June sellers brought 16.5 percent fewer new listings to market than last year. Inventory levels slid 9.0 percent lower. Some sellers are choosing to stay put and wait instead of selling for a lower price. Most sellers are also buyers and are reluctant to trade away their 3.0 percent interest rate for 6.8 percent. “Even with fewer sales in light of higher rates, homes are still selling relatively quickly while sellers get relatively strong offers,” said Jerry Moscowitz, President of Minneapolis Area REALTORS®. “That’s partly driven by homeowners with rates under 4.0 percent staying put.”

Both supply and demand have come down in tandem, meaning the balance between buyer and seller activity has remained tight. Inventory levels fell 13.4 percent in June to 7,492 active listings. The market still favors sellers, but not to the same degree as the last few years. Our 2.0 months supply of inventory was up 17.6 percent. Typically 4-6 months of supply are needed to achieve a balanced market.

Location & Property Type

Market activity varies by area, price point and property type. New home sales rose 24.3 percent while existing home sales were down 12.8 percent. Single family sales fell 13.7 percent, condo sales declined 3.2 percent and townhome sales were up 0.8 percent. Sales in Minneapolis decreased 12.1 percent while Saint Paul sales fell 12.9 percent. Cities such as Annandale, Shorewood, White Bear Township and Delano saw the largest sales gains while White Bear Lake, New Hope, New Prague, Zimmerman and Hudson all had notably lower demand than last year.

June 2023 Housing Takeaways (compared to a year ago)

• Sellers listed 6,664 properties on the market, a 16.5 percent decrease from last June
• Buyers signed 4,997 purchase agreements, down 10.8 percent (5,343 closed sales, down 18.0 percent)
• Inventory levels shrank 13.4 percent to 7,492 units
• Month’s Supply of Inventory rose 17.6 percent to 2.0 months (4-6 months is balanced)
• The Median Sales Price rose 0.5 percent to $382,000
• Days on Market rose 47.6 percent to 31 days, on average (median of 12 days, up 50.0 percent)
• Changes in Sales activity varied by market segment
  • Single family sales decreased 13.7 percent; Condo sales were down 3.2 percent & townhouse sales rose 0.8 percent
  • Traditional sales declined 11.0 percent; foreclosure sales rose 76.0 percent (44); short sales decreased 33.3 percent (4)
  • Previously owned sales were down 12.8 percent; new construction sales rose 24.3 percent
  • Sales under $500,000 fell 12.9 percent; sales over $500,000 declined 0.4 percent

From The Skinny Blog.

• The median sales price was down 1.3 percent from last May to $370,000
• Signed purchase agreements fell 19.3 percent; new listings down 17.6 percent
• Sellers accepted offers for an average of 101.1 percent of their list price

(June 15, 2023) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, home prices dipped slightly from last May. Both buyer and seller activity were also lower compared to last year.

Sales & Prices

Prices were flat in April and down slightly in May. As in April, May sellers still accepted offers above their list price despite a decline in sales—a dynamic that reflects the persistently tight balance between supply and demand even in light of rising mortgage rates. While some sellers are still seeing multiple offers on well-presented listings, the offers were closer to 1.0 percent over list price versus 4.0 percent over list price last May. With half the homes selling in under 13 days, market times are up as demand has waned. And yet, homes are still selling faster than in May of 2019 and 2020.

Pending sales dipped 19.3 percent; closed sales fell 28.1 percent. Condo sales showed the largest drop while townhomes saw the smallest decline. Single family homes sold at a median of $405,000, townhomes at $311,000 and condos at $205,000. New home sales were flat while existing home sales were down. New homes sold for $461,000 while existing homes sold for $355,000. Sales under $500,000 decreased 20.4 percent while sales over $1M fell just 6.6 percent.

Home prices are up 25.5 percent since May 2020, but down 1.3 percent from May 2022. “It’s important to keep things in perspective,” said Jerry Moscowitz, President of Minneapolis Area REALTORS®. “The median price simply reflects the middle or typical home selling, but every home is unique. In some ways, this pause gives buyers some room to be more selective on the listings that really stand out.”

Listings and Inventory

In May, sellers brought 17.6 percent fewer new listings online than last year—the smallest decline in four months. Inventory levels slid 9.0 percent lower. Some sellers are choosing to stay put and wait instead of selling for a lower price. Most sellers are also buyers and are reluctant to trade away their 3.0 percent interest rate for 6.8 percent. “While rates are surely a factor in decision-making, don’t lose sight of other factors like changes in lifestyle, a new job, growing or shrinking households, separations and so on,” said Brianne Lawrence, President of the Saint Paul Area Association of REALTORS®. “Economists’ interest rate forecasts vary widely; nobody knows what will happen. If you buy and rates go down you can refinance, if they go up, you’ll be glad you didn’t wait. We’re still below the average 30-year mortgage interest rate over the last 50 years.”

Sellers are also still getting good offers fairly quickly. At a median of 13 days, homes are still selling even faster than in May 2020—there are just fewer sales. But, there are also fewer listings. Both supply and demand downshifting together means the balance between buyer and seller activity has remained tight. And those sellers accepted offers at 101.1 percent of their list price—down from 104.1 percent from last May but clearly still a strong figure. The Twin Cities metro remains a seller’s market, just not to the same degree as last year. The 1.8 months supply of inventory for May was up 28.6 percent. Typically 4-6 months of supply are needed to achieve a balanced, neutral market.

Location & Property Type

Market activity varies by area, price point and property type. New home sales rose 34.6 percent while existing home sales were down 23.0 percent. Single family sales fell 23.6 percent, condo sales declined 8.5 percent and townhome sales were down 3.9 percent. Sales in Minneapolis decreased 13.1 percent while Saint Paul sales fell 29.8 percent. Cities such as Watertown, Medina, Corcoran, Dayton and Shakopee saw the largest sales gains while Buffalo, Monticello, Cambridge and Zimmerman all had notably lower demand than last year.

For more information on weekly and monthly housing numbers visit www.mplsrealtor.com or www.spaar.com

May 2022 Housing Takeaways (compared to a year ago)

• Sellers listed 6,645 properties on the market, a 17.6 percent decrease from last May
• Buyers signed 4,901 purchase agreements, down 19.3 percent (3,994 closed sales, down 28.1 percent)
• Inventory levels shrank 9.0 percent to 6,864 units
• Month’s Supply of Inventory rose 28.6 percent to 1.8 months (4-6 months is balanced)
• The Median Sales Price softened 1.3 percent to $370,000
• Days on Market rose 65.2 percent to 38 days, on average (median of 13 days, up 85.7 percent)
• Changes in Sales activity varied by market segment
  • Single family sales decreased 23.6 percent; Condo sales were down 8.5 percent & townhouse sales fell 3.9 percent
  • Traditional sales declined 19.6 percent; foreclosure sales rose 67.9 percent; short sales decreased 33.3 percent (12 to 8)
  • Previously owned sales were down 23.0 percent; new construction sales rose 34.6 percent

  
  From The Skinny Blog.

• The median sales price was down 0.7 percent to $367,500
• The average market time was up 60.7 percent to 45 days
• New listings down 27.9 percent; pending sales down 28.8 percent

(May 17, 2023) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, home prices dipped slightly from last April. Both buyer and seller activity were also lower compared to last year.

Sales & Prices

Prices were flat in March and down less than 1.0 percent in April. Despite a slight softening in prices, sellers were still getting offers above their list price, on average (100.1 percent) despite a 28.8 percent decline in sales. These two dynamics seem to portray conflicting pictures. While still present, bidding wars this year haven’t been as extreme as they have over the last couple years. Luxury market activity also cooled slightly more than the rest of the market—though it’s too early to label this a trend. Townhomes tend to sell for about 25.0 percent less than single family homes and made up the largest share of overall closed sales since 2006. This is mostly due to sales in other segments cooling faster than townhomes, but still impacts overall prices.

Home prices are up 28.1 percent since March 2020 but down 0.7 percent from April 2022. “Homeowners sometimes panic when prices soften while buyers often rejoice,” said Jerry Moscowitz, President of Minneapolis Area REALTORS®. “But it’s important to remember that it simply reflects the cross section of homes selling and doesn’t necessarily affect your home’s value. That’s why home buyers should have at least a 5-7 year timeframe.” Sellers are also still getting solid offers in a reasonable timeframe. Some buyers are choosing smaller homes with fewer bedrooms to contain their monthly mortgage payments. At a median of 17 days, homes are still selling as quickly as they did in April 2020. There are just fewer of those sales. But there are also fewer listings. Both supply and demand downshifting together means the balance between buyer and seller activity remains tight as the market remains undersupplied.

Listings and Inventory

In April, sellers brought 5,170 new listings online or 27.9 percent fewer than last year. Inventory levels trickled 4.5 percent lower. Some sellers are choosing to stay put and wait instead of selling for a lower price. Most sellers are also buyers and higher mortgage rates have harmed affordability significantly. “Make no mistake: multiple offers are still happening, and some properties are selling in a few days or less for well over asking,” said Brianne Lawrence, President of the Saint Paul Area Association of REALTORS®. “But this new environment means buyers are being more selective and budget minded.”

The Twin Cities metro is still a seller’s market, just not to the same degree as last year. April’s months supply of inventory was up an even 25.0 percent. That meant we had 1.5 months’ supply of inventory at month-end. Typically 4-6 months of supply are needed to reach a balanced, neutral market.

Location & Property Type

Market activity varies by area, price point and property type. New home sales rose 20.0 percent while existing home sales were down 32.9 percent. Single family sales fell 31.5 percent, condo sales declined 36.1 percent and townhome sales were down 14.4 percent. Sales in Minneapolis decreased 36.4 percent while Saint Paul sales fell 28.6 percent. Cities like North Branch, White Bear Township, Watertown and Mahtomedi saw the largest sales gains while Carver, New Brighton, North St. Paul, Hugo and Lake Elmo all had notably lower demand than last year.

April 2022 Housing Takeaways (compared to a year ago)

• Sellers listed 5,170 properties on the market, a 27.9 percent decrease from last April
• Buyers signed 4,029 purchase agreements, down 28.8 percent (3,263 closed sales, down 32.2 percent)
• Inventory levels shrank 4.5 percent to 6,155 units
• Month’s Supply of Inventory rose 25.0 percent to 1.5 months (4-6 months is balanced)
• The Median Sales Price slipped 0.7 percent to $367,500
• Days on Market rose 60.7 percent to 45 days, on average (median of 17 days, up 112.5 percent)
• Changes in Sales activity varied by market segment
  • Single family sales decreased 31.5 percent; Condo sales were down 36.1 percent & townhouse sales fell 14.4 percent
  • Traditional sales declined 29.1 percent; foreclosure sales rose 5.9 percent; short sales increased 100.0 percent (3 to 6)
  • Previously owned sales decreased 32.9 percent; new construction sales rose 20.0 percent

From The Skinny Blog.