August 2023 Market Insights

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

• New listings: 5,823 | -16%
• Median sales price: $375,000 | 0.0%
• Closed sales: 4,387 | -21.4%
• Pending sales: 4,408 | -9.5%
• Days on market: 29 | +31.8%
• Inventory: 7,842 | -16.1%
• Months’ supply: 2.1 | +10.5%

Prices remained flat; Sales declined

The highlights

• The median sales price was flat from last July after being up slightly in June
• Days on market increased to 29 on average; median of 12 days
• Sellers received offers at 100.8% of their asking price
• Both buyer and seller activity were down from last July
• Months’ supply moved to 2.1 months

A closer look

The market remained stubborn as interest rates hovered around 7%. A limited supply of homes for sale has kept prices strong, but buyers and sellers alike seem to have taken the month off to enjoy the summer weather and revisit their real estate plans later.

With the slight slowdown in buyer activity, the supply/demand gap inched up to 2.1 months, a market that still favors sellers but is moving toward more balance. A supply of 4-6 months is generally considered a balanced market between buyers and sellers. New construction continues to be a bright spot in the market, with a significant increase in activity. Make sure to plan your Fall Parade of Homes tour with your Realtor to see if a new home might be right for you.

Market dynamics remain local, as always. A few items of note:

• New construction sales: + 61.8%
• Existing home sales: - 13.5%
• Single family home sales: - 11.6%
• Townhome sales: -4.5%
• Condo sales: 0.0%
• Minneapolis sales: - 12.7%
• St. Paul sales: - 13.8%
• Cities with the largest sales gains were Mounds View, St. Anthony, Zumbrota, and Vadnais Heights

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.3% (as of June 2023)
• Average rates for 30-year conforming mortgage 7.09%**

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 July 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: 136| +13%
• Avg. sales price: $349,240 | +12%
• Pending sales: 118 | No change
• Days on market: 34 | +210
• Inventory: 198 | +3%
• Months’ supply: 2.70 | +29%

Brainerd area

• New listings: 649 | -14%
• Avg. sales price: $381,590 | -1%
• Closed sales: 477 | -14%
• Days on market: 30 | +20%
• Inventory: 1,170 | +2%
• Months’ supply: 3.10 | +29%

Lake Superior area

• New listings: 484 | -2%
• Avg. sales price: $300,868 | +6%
• Pending sales: 325 | -17%
• Days on market: 20 | -5%
• Inventory: 805| +4%
• Months’ supply: 3.20 | +28%

Southeast Minnesota area

• New listings: 618 | +1%
• Avg. sales price: $322,883 | +3%
• Closed sales: 680 | +53%
• Days on market: 33 | +6%
• Inventory: 769 | +74%
• Months’ supply: 1.8 | +100%

St. Cloud area

• New listings: 157 | -11%
• Avg. sales price: $278,659 | -12%
• Pending sales: 136 | -20%
• Days on market: 21 | +13%
• Inventory: 199 | -12%
• Months’ supply: 1.8 | +13%

Mankato area

• New listings: 168 | -18%
• Avg. sales price: $274,092 | -3%
• Pending sales: 165 | -13%
• Days on market: 68 | +17%
• Inventory: 297 | -7%
• Months’ supply: 2.1 | +11%

Northwestern Wisconsin area

• New listings: 582 | -11%
• Avg. sales price: $314,873 | -3%
• Closed sales: 434 | -22%
• Days on market: 68 | +11%
• Inventory: 1,535 | -5%
• Months’ supply: 4.00 | +29%

West Central Minnesota area

• New listings: 333 | +3%
• Avg. sales price: $220,614 | -4%
• Pending sales: 263 | -5%
• Days on market: 45 | +45%
• Inventory: 585 | -1%
• Months’ supply: 2.80 | +22%

Bemidji area

• New listings: 82 | -4%
• Median sales price: $275,000 | +11%
• Pending sales: 49 | -22%
• Inventory: 144 | +14%
• Months’ supply: 3.30 | +43%

Leech Lake and surrounding area

• New listings: 83 | -19%
• Median sales price: $357,450 | +8%
• Pending sales: 74 | No change
• Days on market: 23 | +130%
• Inventory: 155 | -9%
• Months’ supply: 3.50 | +6%

Little Falls area

• New listings: 39 | -39%
• Median sales price: $301,000 | +22%
• Pending sales: 21 | +62%
• Days on market: 13 | +8%
• Inventory: 30 | -19%
• Months’ supply: 1.60 | -6%

Southwest Minnesota area

• New listings: 123 | -12%
• Median sales price: $178,500 | +1%
• Pending sales: 102 | +2%
• Days on market: 53 | +51%
• Months’ supply: 3.10 | +19%

Headwaters area

• New listings: 149 | -3%
• Median sales price: $275,000 | +10%
• Pending sales: 108 | -19%
• Days on market: 33 | -20%
• Months’ supply: 3.80 | +27%