April 2023 Market Insights

Key insights from March 2023 (compared to March 2022)*

• New listings: 4,980 | -23.9%
• Median sales price: $355,000 | +0.0%
• Closed sales: 3,207 | -20.5%
• Pending sales: 3,767 | -27.9%
• Days on market: 57 | +62.9%
• Inventory: 5,769 | +2.1%
• Months’ supply: 1.4 | +27.3%

New year, same market: Twin Cities sees high pricing, low activity

The long and the short of it

• Median pricing shot back up to $355,000, up marginally year-over-year.
• March saw just 3,207 homes sold, a more than 20% drop from 2022, but numbers should increase throughout spring.
• The right homes still attract strong buyer interest, but homes are overall taking longer to sell.

The early signs of the spring real estate market started to pop up in March around the 16-county Twin Cities metro area, but so far activity is still lagging behind levels from the past couple of years.

A total of 4,980 new homes hit the market in March, a nearly 50% jump from February levels but down 23.9% from March 2022.

In the same month, 3,207 home sales closed, down 20.5% from the same time period in 2022. Sales for the year so far are down 23.2% as consumers continue to wrestle with inflation and higher mortgage interest rates.

But homes that are sold are still, on average, selling for more than ever before. The median sales price in March was $355,000, up slightly from March 2022. The new median is the highest our market has seen in 2023 as well as the highest sum since October 2022.

The median price is just one indicator that sellers retained some of their advantage in March. Another: The typical seller received 98.6% of their original list price in March, up 1.4% from February 2023. The number is still down from March 2022’s 102.7%, however. Sellers received more than their original list price for most months in 2021 and 2022, but that run ended in August 2022.

The typical home isn’t flying off the market in just over a month (35 days) like in March 2022, but even at 57 days, sales are happening more quickly than what’s become “usual.” Over the course of the 2010s, for example, homes typically took anywhere from 50 to 160 days to sell.

The supply of homes available also continues to rise, albeit only slightly. There are 5,769 homes for sale as of the end of March, a 2.1% increase over March 2022. Based on current trends, those homes represent a 1.4-month supply of homes for sale, up from 1.1 months a year ago.

It remains to be seen how the opposing forces of spring weather and higher interest rates than a year ago will play out in the market. One thing that seems a given, however: Sellers interested in achieving attractive prices should still be able to do so, but with a bit more patience.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.2% (as of February 2023)
• Average rates for 30-year conforming mortgage 6.27%**

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 March 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: 64 | +28%
• Avg. sales price: $206,358 | -16%
• Pending sales: 53 | +18%
• Days on market: 90 | +143%
• Inventory: 100 | +19%
• Months’ supply: 1.3 | +63%

Brainerd area

• New listings: 362 | +46%
• Avg. sales price: $304,844 | +4%
• Closed sales: 255 | +52%
• Days on market: 67 | +40%
• Inventory: 604 | +44%
• Months’ supply: 1.5 | +67%

Lake Superior area

• New listings: 217 | -32%
• Avg. sales price: $253,896 | +1%
• Pending sales: 144 | -32%
• Days on market: 46 | +24%
• Inventory: 430| +12%
• Months’ supply: 1.6 | +45%

Southeast Minnesota area

• New listings: 544 | +40%
• Avg. sales price: $304,422 | +10%
• Closed sales: 356 | +55%
• Days on market: 57 | +19%
• Inventory: 662 | +58%
• Months’ supply: 1.5 | +88%

St. Cloud area

• New listings: 113 | +33%
• Avg. sales price: $263,231 | +9%
• Pending sales: 89 | +9%
• Days on market: 42 | +2%
• Inventory: 162 | +84%
• Months’ supply: 1.3 | +117%

Mankato area

• New listings: 150 | -15%
• Avg. sales price: $265,841 | +0%
• Pending sales: 155 | -3%
• Days on market: 95 | +20%
• Inventory: 211 | +32%
• Months’ supply: 1.4 | +56%

Northwestern Wisconsin area

• New listings: 349 | -26%
• Avg. sales price: $301,508 | +7%
• Closed sales: 255 | -19%
• Days on market: 105 | +8%
• Inventory: 947 | -10%
• Months’ supply: 2.4 | +20%

West Central Minnesota area

• New listings: 206 | +30%
• Avg. sales price: $193,481 | -1%
• Pending sales: 172 | +26%
• Days on market: 66 | +22%
• Inventory: 375 | +8%
• Months’ supply: 1.7 | +31%

Bemidji area

• New listings: 50 | -35%
• Median sales price: $189,250 | -31%
• Pending sales: 33 | -42%
• Inventory: 80 | +8%
• Months’ supply: 1.8 | +38%

Leech Lake and surrounding area

• New listings: 31 | -35%
• Median sales price: $265,000 | +15%
• Pending sales: 22 | -52%
• Days on market: 55 | +162%
• Inventory: 66 | +3%
• Months’ supply: 1.4 | +17%

Little Falls area

• New listings: 19 | -30%
• Median sales price: $195,000 | +8%
• Pending sales: 16 | -41%
• Days on market: 26 | +160%
• Inventory: 16 | +14%
• Months’ supply: 0.9 | +50%

Southwest Minnesota area

• New listings: 67 | -39%
• Median sales price: $168,000 | +15%
• Pending sales: 67 | -27%
• Days on market: 77 | +38%
• Months’ supply: 2.0 | +33%

Headwaters area

• New listings: 82 | -27%
• Median sales price: $233,900 | +4%
• Pending sales: 66 | -20%
• Days on market: 91 | +94%
• Months’ supply: 1.9 | +36%