December 2022 Market Insights

Key insights from November 2022 (compared to November 2021)*

• New listings: 3,453 | -17.0%
• Median sales price: $354,000 | +4.1%
• Closed sales: 3,430 | -38.8%
• Pending sales: 2,841 | -40.5%
• Days on market: 40 | +33.3%
• Inventory: 7,629 | +12.6%
• Months’ supply: 1.7 | +41.7%

Supply constraints put pressure on Twin Cities real estate pricing

The long and the short of it

• Median pricing again rose year-over-year, rising 4.1% to $354,000.
• The supply of homes for sale continues to push upward, having jumped 12.6% from November 2021.
• The market continues to be more about quality than quantity, with fewer sales and listings but higher pricing and historically fast-moving sales.

Sales and listing activity continued its slowdown throughout the 13-county Twin Cities metro area in November, but there’s still plenty of good news for both potential buyers and sellers with 2023 on the horizon.

There were just 3,430 closed sales last month, down 38.8% from November 2021. That’s compared to more than 5,000 sales each of the past two Novembers, and just over 4,000 in November 2019. So far this year, we’ve seen 50,544 closed sales, down 17.6% from the same period in 2021.

New listings also slowed down again in November, with 3,453 homes coming to the market. That’s down 17% year-over-year, and the fewest new listings in a November since 2018. Potential buyers have been a bit slower to act toward the end of this year as they adjust to higher mortgage interest rates and a potentially competitive market for their next home.

Inventory levels, however, continue to offer some hope for buyers who are looking for a less competitive process. 7,629 homes were listed for sale at the end of November, a 12.6% increase from November 2021. With the current supply and demand, it’s estimated that our supply would last 1.7 months, again a big increase over last November’s 1.2-month supply.

While that’s up significantly – we saw barely more than a one-month supply throughout spring and summer 2021 – it’s still not enough to completely balance the market. Experts typically consider a balanced market one with about a six-month supply. The last time that happened in the Twin Cities area was late 2011, and it’s been a seller-friendly market ever since.

The continued pressure from low inventory will only keep prices higher than usual. In November, the median home sold for $375,000, a 15.4% rise year-over-year. The pace of sales did slow a bit, though, with the typical home spending 40 days on the market, but that’s still about a month faster than homes were selling as recently as 2020.

Although higher mortgage rates have cut into some buyers’ budgets, well-maintained homes in desirable locations are still attracting multiple offers – and are expected to do so well into 2023.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 1.7% (as of October 2022)
• Average rates for 30-year conforming mortgage 6.31%**
• Interest rates fell steadily throughout November, after having spent much of October above 7%.

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 November 2022.

**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: 56 | -22%
• Avg. sales price: $292,987 | +10%
• Pending sales: 57 | -34%
• Days on market: 35 | -8%
• Inventory: 133 | no change
• Months’ supply: 1.6 | +33%

Brainerd area

• New listings: 245 | -13%
• Avg. sales price: $325,491 | +5%
• Closed sales: 404 | -22%
• Days on market: 38 | +15%
• Inventory: 843 | +34%
• Months’ supply: 1.9 | +46%

Lake Superior area

• New listings: 188 | -20%
• Avg. sales price: $256,562 | -5%
• Pending sales: 273 | -23%
• Days on market: 28 | -20%
• Inventory: 604| +26%
• Months’ supply: 2.1 | +62%

Southeast Minnesota area

• New listings: 336 | -13%
• Avg. sales price: $290,658 | +7%
• Closed sales: 385 | -27%
• Days on market: 39 | +22%
• Inventory: 798 | +23%
• Months’ supply: 1.7 | +42%

St. Cloud area

• New listings: 229 | +118%
• Avg. sales price: $295,146 | +22%
• Pending sales: 170 | +26%
• Days on market: 19 | -34%
• Inventory: 226 | +37%
• Months’ supply: 1.5 | +50%

Mankato area

• New listings: 119 | -15%
• Avg. sales price: $259,856 | +13%
• Pending sales: 98 | -39%
• Days on market: 76 | +7%
• Inventory: 280 | +17%
• Months’ supply: 1.7 | +31%

Northwestern Wisconsin area

• New listings: 249 | -31%
• Avg. sales price: $288,897 | +14%
• Closed sales: 345 | -36%
• Days on market: 78 | -3%
• Inventory: 1,146 | -18%
• Months’ supply: 2.5 | -7%

West Central Minnesota area

• New listings: 164 | -20%
• Avg. sales price: $201,173 | +7%
• Pending sales: 154 | -42%
• Days on market: 41 | -13%
• Inventory: 501 | +2%
• Months’ supply: 2.1 | +17%

Bemidji area

• New listings: 26 | -10%
• Median sales price: $274,000 | +27%
• Pending sales: 13 | -71%
• Inventory: 100 | +15%
• Months’ supply: 2.0 | +43%

Leech Lake and surrounding area

• New listings: 22 | -15%
• Median sales price: $296,250 | +21%
• Pending sales: 23 | -44%
• Days on market: 34 | +79%
• Inventory: 108 | +48%
• Months’ supply: 2.2 | +69%

Little Falls area

• New listings: 16 | no change
• Median sales price: $179,950 | -20%
• Pending sales: 10 | -60%
• Days on market: 14 | +40%
• Inventory: 33 | +74%
• Months’ supply: 1.7 | +113%

Southwest Minnesota area

• New listings: 62 | +3%
• Median sales price: $153,000 | no change
• Pending sales: 62 | -48%
• Days on market: 49 | -6%
• Months’ supply: 2.3 | +35%

Headwaters area

• New listings: 47 | -6%
• Median sales price: $250,000 | +16%
• Pending sales: 41 | -47%
• Days on market: 40 | +5%
• Months’ supply: 2.5 | +56%