December 2023 Market Insights

Market Insights—December 2023

• Key insights from Nov. 2023 (compared to Nov. 2022)*
• New listings: 3,657 | +5.3%
• Median sales price: $362,000 | +2.0%
• Closed sales: 3,261 | -7.1%
• Pending sales: 2,807 | -1.5%
• Days on market: 40 | 0.0%
• Inventory: 7,819 | -5.1%
• Months’ supply: 2.1 | +10.5%

The highlights

• Months’ supply of homes was up 10.5% (to 2.1 months) from the same time last year
• New listings increased 5.3% to 3,657
• Mortgage rates softened slightly
• Inventory remains at historically low levels nationwide, shrinking 5.1% locally from a year ago
• Sales of homes over $500,000 were up 16.7%

Those with their eye on interest rates saw a sizable decrease month over month with October’s 8%-plus rates, easing closer to 7% by the end of November. With continuing declines in rates in recent weeks, 2024 is expected to offer more opportunities for buyers and sellers. Find out what to expect in 2024 from Edina Realty President Sharry Schmid’s 2024 Housing Market Forecast.

Those who do buy in today’s market tend to deploy more cash for a couple of reasons: one is that they are hoping to forgo loans with high interest rates, the other is simply that they are better positioned to enter the market under the current circumstances. The increase in sales of luxury properties and new construction homes can be similarly attributed to a more affluent buyer with stronger cash reserves.

Perspective on payments

According to a release published by the Minneapolis Area of Realtors, “Using some assumptions around taxes and insurance, the local monthly payment on the median priced home stands at $2,650 so far this year compared to $1,600 in 2020.”

Overall, we continued to see low inventory, limited buyer activity and increasing sales prices in November, following the laws of supply and demand.

Insights according to property type, price point and location:

• Condo sales: + 12.7%
• Townhome sales: - 4.9%
• Single family sales: - 1.8%
• Homes under $500,000: - 5.3%
• Homes over $500,000: + 16.7%
• Existing home sales: - 3.7%
• New construction: + 16.7%

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.9% (as of October 2023)
• Average rates for 30-year conforming mortgage 6.95%**

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 October 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: 55 | -2%
• Avg. sales price: $311,609 | +6%
• Pending sales: 50 | -12%
• Days on market: 33 | -6%
• Inventory: 188 | +41%
• Months’ supply: 2.60 | +63%

Brainerd area

• New listings: 288 | +18%
• Avg. sales price: $308,233 | -5%
• Closed sales: 314 | -22%
• Days on market: 45 | +18%
• Inventory: 1,028 | +22%
• Months’ supply: 2.80 | +47%

Lake Superior area

• New listings: 248 | +32%
• Avg. sales price: $280,550 | +9%
• Pending sales: 253 | -7%
• Days on market: 28 | No change
• Inventory: 760 | +26%
• Months’ supply: 3.10 | +48%

Southeast Minnesota area

• New listings: 355 | +6%
• Avg. sales price: $308,916 | +6%
• Closed sales: 365 | -5%
• Days on market: 43 | +10%
• Inventory: 938 | +18%
• Months’ supply: 2.30 | +35%

St. Cloud area

• New listings: 90 | -61%
• Avg. sales price: $265,032 | -10%
• Pending sales: 78 | -54%
• Days on market: 27 | +42%
• Inventory: 230 | +2%
• Months’ supply: 2.20 | +47%

Mankato area

• New listings: 104 | -13%
• Avg. sales price: $262,844 | +1%
• Pending sales: 106 | +8%
• Days on market: 70 | -8%
• Inventory: 355 | +27%
• Months’ supply: 2.60 | +53%

Northwestern Wisconsin area

• New listings: 246 | -1%
• Avg. sales price: $295,792 | +2%
• Closed sales: 352 | +2%
• Days on market: 74 | -5%
• Inventory: 1,175 | +3%
• Months’ supply: 3.40 | +36%

West Central Minnesota area

• New listings: 187 | +14%
• Avg. sales price: $230,236 | +14%
• Pending sales: 180 | +17%
• Days on market: 52 | +27%
• Inventory: 614 | +23%
• Months’ supply: 3.00 | +43%

Bemidji area

• New listings: 31 | +19%
• Median sales price: $226,250 | -17%
• Pending sales: 19 | +46%
• Inventory: 137 | +37%
• Months’ supply: 3.20 | +60%

Leech Lake and surrounding area

• New listings: 28 | +27%
• Median sales price: $315,500 | +6%
• Pending sales: 27 | +17%
• Days on market: 23 | -32%
• Inventory: 129 | +19%
• Months’ supply: 3.10 | +41%

Little Falls area

• New listings: 12 | -25%
• Median sales price: $282,450 | +57%
• Pending sales: 9 | -10%
• Days on market: 15 | +7%
• Inventory: 34 | +3%
• Months’ supply: 1.80 | +6%

Southwest Minnesota area

• New listings: 66 | +6%
• Median sales price: $179,950 | +18%
• Pending sales: 84 | +35%
• Days on market: 53 | +8%
• Months’ supply: 3.20 | +39%

Headwaters area

• New listings: 52 | +11%
• Median sales price: $220,000 | -12%
• Pending sales: 50 | +22%
• Days on market: 50 | +25%
• Months’ supply: 3.50 | +40%