The Minnesota housing market experienced significant changes in 2023. While several key metrics have shown declines, such as new listings, pending sales, and closed sales, the median sales price has remained relatively stable. The market is leaning towards balance, providing opportunities for both buyers and sellers to navigate the real estate landscape with confidence.
Minnesota Housing Market Trends 2023
Understanding the housing market in Minnesota is essential for anyone considering buying or selling a home. In this blog post, we'll explore the latest market data for July 2023, provided by the Minnesota REALTORS®, and answer key questions about the state of the market.
Key Metrics for July 2023
Let's start by examining the key metrics for July 2023 and comparing them to the previous year, 2022, to gain insights into the current state of the Minnesota housing market.
New Listings
In July 2023, there were 8,597 new listings in Minnesota, representing a 14.6% decrease from the same month in 2022. Year to date, there have been 51,826 new listings, showing a 17.8% decrease compared to the previous year.
Pending Sales
July 2023 saw 6,610 pending sales, reflecting a 10.1% drop from July 2022. Year to date, there have been 39,835 pending sales, indicating a 19.0% decrease compared to the same period in 2022.
Closed Sales
The number of closed sales in July 2023 was 6,487, showing a 19.0% decrease from the previous year. Year to date, there have been 35,629 closed sales, marking a 22.2% decline compared to 2022.
Median Sales Price*
The median sales price in July 2023 was $342,995, representing a modest increase of 0.9% from the previous year. Year to date, the median sales price has risen to $335,000, showing a 1.5% increase compared to 2022.
Percent of Original List Price Received*
In July 2023, sellers received 100.1% of the original list price, indicating a 0.9% decrease from the previous year. Year to date, the percent of original list price received stands at 99.2%, marking a 2.5% decrease compared to 2022.
Days on Market Until Sale
The average number of days on the market until sale in July 2023 was 28 days, which represents a 12.0% increase from the previous year. Year to date, the average days on market has extended to 38 days, showing a 22.6% increase compared to 2022.
Months Supply of Inventory
The months supply of inventory in July 2023 was 2.3 months, indicating a 15.0% increase compared to the previous year. Detailed data for the year to date is not available in this category.
Are Home Prices Dropping in MN?
Based on the data, home prices in Minnesota are not experiencing a significant drop. In fact, the median sales price has shown a slight increase of 0.9% in July 2023 compared to the previous year. This suggests that, on average, home values have remained relatively stable.
Is it a Buyer's or Seller's Market in MN?
The current market conditions in Minnesota suggest a shift towards a more balanced market. While the percent of original list price received has decreased slightly, indicating some room for negotiation for buyers, the low months supply of inventory at 2.3 months still implies some competition among buyers. Therefore, it can be considered a market that is neither strongly in favor of buyers nor sellers, but rather balanced.
Minnesota Housing Market Forecast 2023-2024
As we look ahead to the housing market in Minnesota, it's essential to consider both current data and future predictions. In this blog post, we'll explore the latest insights and forecasts for the Minnesota housing market in 2023 and beyond.
Current Market Snapshot
Let's start by examining the current state of the Minnesota housing market based on data from Zillow as of July 31, 2023:
- The average home value in Minnesota is $331,869, showing a slight 0.0% change over the past year. This suggests a level of stability in home prices.
- Homes in Minnesota go to pending status in approximately 13 days, indicating a relatively fast-paced market.
- Additional key statistics as of June 30, 2023, include a median sale-to-list ratio of 1.003, 52.2% of sales recorded over the list price, 29.6% of sales below the list price, and a median of 13 days to pending status as of July 31, 2023.
This data provides valuable insights into the current conditions of the Minnesota housing market, suggesting stability in home values and a competitive environment for buyers.
Top 10 MSAs in Minnesota for Home Price Growth by July 2024
Now, let's take a look at the forecasted home price growth for the top 10 Metropolitan Statistical Areas (MSAs) in Minnesota by July 2024:
- Brainerd, MN MSA: The forecast predicts a 7.2% increase in home prices by July 2024.
- Fergus Falls, MN MSA: Expect a 6.3% growth in home prices in this area by July 2024.
- Hutchinson, MN MSA: Home prices are forecasted to grow by 5.9% by July 2024.
- Austin, MN MSA: A 5.8% increase in home prices is anticipated in this area by July 2024.
- Albert Lea, MN MSA: Home prices are expected to rise by 5.7% in this region by July 2024.
- Owatonna, MN MSA: A 5.4% growth in home prices is projected by July 2024.
- Willmar, MN MSA: Home prices are forecasted to increase by 5% in this area by July 2024.
- Duluth, MN MSA: Expect a 4.9% growth in home prices in Duluth by July 2024.
- Winona, MN MSA: The forecast predicts a 4.9% increase in home prices in Winona by July 2024.
- Bemidji, MN MSA: Home prices are expected to grow by 4.9% in Bemidji by July 2024.
These forecasts highlight the potential for home price growth in various regions of Minnesota, with some areas showing strong anticipated increases by July 2024.
The Minnesota housing market presents a diverse landscape with stability in home prices and varying growth prospects across different MSAs. While overall home values have shown little change, the forecasted growth in certain areas offers opportunities for both buyers and sellers.
It's important to note that market conditions can change over time, so it's advisable for buyers and sellers to stay updated and consult with real estate professionals for the most accurate and timely information.
Sources:
- https://www.mnrealtor.com/buyers-sellers/marketreports
- https://fred.stlouisfed.org/series/MNSTHPI#
- https://www.zillow.com/mn/home-values/
- https://www.neighborhoodscout.com/mn/real-estate
- https://fred.stlouisfed.org/series/ACTLISCOUMN#
