January 2025 Market Insights

Key insights for December 2024 (compared to December 2023)*

• New listings: 2,635 | +6.4%
• Median sales price: $370,000 | +4.6%
• Closed sales: 3,326 | +14.1%
• Pending sales: 2,628 | +6.2%
• Days on market: 56 | +9.8%
• Inventory: 6,712 | -3.4%
• Months’ supply: 1.8 | -5.3%

Sales up; months’ supply and inventory drop

December closed sales in the 16-county metro were up 14.1% as more buyers wrapped up the year with a home purchase. However, inventory couldn’t keep pace and the unmet demand drove up prices by nearly 5% to $370,000. Days on market were up nearly 10% to 56 days, giving buyers a bit more time to make the right decision on a home. It’s not uncommon for inventory to dip in December as sellers put off selling until after the holidays.

Zooming out: annual market activity (2024 compared to 2023)

2024 buyer and seller activity was higher overall than 2023, but not by much. And inventory was lower overall by nearly 2%, resembling 2018 and keeping us firmly in a seller’s market.

We have not seen a balanced market since 2011. Remember, a balanced market occurs when neither the buyer nor the seller has a distinct advantage—when there is around 5-6 months of home supply. The current supply falls just short of two months.

Since 2020, home prices are up 25.5% statewide and 24.6% for the Twin Cities area.

Twin Cities 2024

• New listings: 64,496 I +8.2%
• Closed sales: 45,145 I +1.8%
• Inventory: 6,712 I -3.4%
• Median price: $380,000 I +3.3%
• Days on market: 45 I +12.5%

Minnesota 2024

• New listings: 92,008 I +6.4%
• Closed sales: 66,735 I +1.1%
• Inventory: 11,476 I -0.3%
• Median price: $345,000 I +3.9%
• Days on market: 42 I +10.5%

We anticipate more buyer and seller activity in 2025, but we’ll be watching unemployment, wage increases and interest rates closely. Read Edina Realty President Sharry Schmid’s 2025 market predictions for a closer look at economic drivers and expectations.

As always, real estate is hyperlocal, and having a professional Edina Realty agent help you navigate your home sale or purchase is the best way to protect your interests. The spring real estate market typically kicks off in February!

• Sellers: contact your agent to request a comparative market analysis on your home.
• Buyers: consult an agent about your options and timeline.

Reach out to an Edina Realty to be matched with a professional real estate agent today.

Economic check-up

• Minneapolis-St. Paul area unemployment rate: 2.9% (as of November 2024)
• Average rates for 30-year conforming mortgage 6.96%**

*Data courtesy NorthstarMLS for the 16-county Twin Cities metro area for December 2024.

**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: 36 | +16%
• Avg. sales price: $343,272 | +11%
• Pending sales: 43 | +13%
• Days on market: 58 | +21%
• Inventory: 154 | -4%
• Months’ supply: 2.00 | -13%

Brainerd area

• New listings: 197 | +8%
• Avg. sales price: $358,605 | +19%
• Closed sales: 284 | -2%
• Days on market: 63 | +26%
• Inventory: 1,022 | +4%
• Months’ supply: 3.70 | +4%

Lake Superior area

• New listings: 140 | +2%
• Avg. sales price: $299,805 | +7%
• Pending sales: 209 | -10%
• Days on market: 42 | +5%
• Inventory: 703 | +14%
• Months’ supply: 2.70 | +13%

Southeast Minnesota area

• New listings: 250 | -3%
• Avg. sales price: $315,497 | +10%
• Closed sales: 406 | +13%
• Days on market: 46 | -12%
• Inventory: 870 | +7%
• Months’ supply: 2.10 | +11%

St. Cloud area

• New listings: 60 | -8%
• Avg. sales price: $274,623 | +7%
• Pending sales: 82 | -4%
• Days on market: 49 | +11%
• Inventory: 181 | -11%
• Months’ supply: 1.60 | -16%

Mankato area

• New listings: 73 | -26%
• Avg. sales price: $295,718 | +13%
• Pending sales: 82 | -21%
• Days on market: 80 | -9%
• Inventory: 333 | +5%
• Months’ supply: 2.40 | +9%

Northwestern Wisconsin area

• New listings: 198 | +8%
• Avg. sales price: $318,150 | +7%
• Closed sales: 310 | +14%
• Days on market: 97 | +11%
• Inventory: 1,233 | +30%
• Months’ supply: 3.40 | +21%

West Central Minnesota area

• New listings: 130 | -6%
• Avg. sales price: $202,789 | -3%
• Pending sales: 145 | -3%
• Days on market: 59 | +9%
• Inventory: 607 | +6%
• Months’ supply: 3.00 | +7%

Bemidji area

• New listings: 13 | -32%
• Median sales price: $299,000 | +24%
• Pending sales: 21 | -9%
• Days on market: 63 | +5%
• Inventory: 147 | +40%
• Months’ supply: 3.40 | +42%

Leech Lake and surrounding area

• New listings: 10 | -41%
• Median sales price: $372,500 | +43%
• Pending sales: 24 | +9%
• Days on market: 36 | +33%
• Inventory: 117 | +18%
• Months’ supply: 2.80 | +17%

Little Falls area

• New listings: 10 | -41%
• Median sales price: $372,500 | +43%
• Pending sales: 24 | +9%
• Days on market: 36 | +33%
• Inventory: 117 | +18%
• Months’ supply: 2.80 | +17%

Southwest Minnesota area

• New listings: 54 | -10%
• Median sales price: $155,500 | -15%
• Pending sales: 70 | +19%
• Days on market: 71 | +9%
• Inventory: 277 | +22%
• Months’ supply: 3.60 | +16%

Headwaters area

• New listings: 28 | -10%
• Median sales price: $277,450 | +11%
• Pending sales: 42 | -5%
• Days on market: 108 | +54%
• Inventory: 306 | +37%
• Months’ supply: 3.50 | +6%