June 2023 Market Insights

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

• New listings: 6,645 | -17.6%
• Median sales price: $370,000 | -1.3%
• Closed sales: 3,994 | -28.1%
• Pending sales: 4,901 | -19.3%
• Days on market: 38 | +65.2%
• Inventory: 6,864 | -9.0%
• Months’ supply: 1.8 | +28.6%

Prices down slightly overall, but still over asking price for sellers

The highlights

• The median sales price declined slightly from a year ago.
• Days on market increased to 38, but half of homes sell in under 13 days.
• Sellers accepted offers at 101.1% of their asking price—down from 104.1% last May.
• Activity varies by area, price point and property type.

A closer look

Activity in May remained consistent with trends of the first few months of the year. Sellers delayed listing their homes for sale while buyers continued to compete over a limited supply of homes. Well-presented homes continue to attract the most activity with some continuing to see multiple offers.

Market dynamics remain local, as is always the case in real estate. A few items of note:

• New construction sales rose by 34.6%
• Existing home sales were down 23%
• Minneapolis sales decreased 13.1%
• St. Paul sales fell 29.8%
• Cities with the largest sales gains were Watertown, Medina, Corcoran, Dayton and Shakopee

Months’ supply of homes for sale remains in sellers’ market territory at 1.8 months (4-6 months of supply are needed to achieve a balanced, neutral market). Some sellers are choosing to stay put due to a low interest rate on their existing home, but changes in lifestyle, family status, job or personal needs drive at least 25% of sales, according to the National Association of Realtors.

The Fed paused raising interest rates in June, which may encourage more activity in the market going forward. Economists’ predictions around interest rates vary widely.

Seller opportunities

• Sellers are still receiving 101.1% of their asking price.
• According to data published in Q3 of 2022 by Investopedia, homeowners have an average of $185,000 worth of equity. That means sellers can take advantage of cash-on-hand for down payments and buying down interest rate points.
• Sellers may be able to buy a larger home with a similar monthly mortgage payment even with a higher interest rate. How? With a bigger down-payment from existing equity.
• Download the Ultimate Guide to Selling Your Home for tips and ideas from local professionals.

Buyer opportunities

• On average, homes are on the market for 38 days, giving buyers more time to make an informed decision—and their best offer.
• While interest rates fluctuate, some lenders offer the ability to lock in rates, buy down points, or refinance at a lower fee in the future.
• Down payment assistance programs may be available for qualified buyers on qualified homes.
• Buyers may not need to come up with a 20% down payment.
• As you begin your home search, find out everything you need to know about buying—get the Go-To Guide for Buying a Home. It’s free and full of answers to your home buying questions.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.7% (as of April 2023)
• Average rates for 30-year conforming mortgage 6.69%**

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 May 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: 164| +15%
• Avg. sales price: $363,339 | +30%
• Pending sales: 102 | -20%
• Days on market: 41 | +105%
• Inventory: 166 | +24%
• Months’ supply: 2.30 | +64%

Brainerd area

• New listings: 783 | -9%
• Avg. sales price: $390,460 | +16%
• Closed sales: 364 | -22%
• Days on market: 39 | +26%
• Inventory: 932 | +12%
• Months’ supply: 2.4 | +41%

Lake Superior area

• New listings: 434 | -14%
• Avg. sales price: $308,788 | +8%
• Pending sales: 221 | -23%
• Days on market: 28 | +12%
• Inventory: 594| +13%
• Months’ supply: 2.3 | +44%

Southeast Minnesota area

• New listings: 627 | +2%
• Avg. sales price: $327,794 | +1%
• Closed sales: 476 | -8%
• Days on market: 41 | +64%
• Inventory: 677 | +27%
• Months’ supply: 1.6 | +45%

St. Cloud area

• New listings: 188 | -18%
• Avg. sales price: $317,074 | +16%
• Pending sales: 149 | -13%
• Days on market: 33 | +106%
• Inventory: 180 | -2%
• Months’ supply: 1.6 | +33%

Mankato area

• New listings: 220 | -17%
• Avg. sales price: $297,908 | +3%
• Pending sales: 177 | -5%
• Days on market: 69 | +6%
• Inventory: 284 | +21%
• Months’ supply: 1.9 | +46%

Northwestern Wisconsin area

• New listings: 619 | -15%
• Avg. sales price: $325,986 | +3%
• Closed sales: 350 | -25%
• Days on market: 85 | +27%
• Inventory: 1,319 | -12%
• Months’ supply: 3.4 | +17%

West Central Minnesota area

• New listings: 344 | +15%
• Avg. sales price: $203,790 | -5%
• Pending sales: 221 | +5%
• Days on market: 68 | +31%
• Inventory: 397 | +43%
• Months’ supply: 1.9 | +27%

Bemidji area

• New listings: 95 | +22%
• Median sales price: $285,000 | +20%
• Pending sales: 61 | -5%
• Inventory: 113 | +15%
• Months’ supply: 2.50 | +47%

Leech Lake and surrounding area

• New listings: 99 | -2%
• Median sales price: $270,000 | -10%
• Pending sales: 51 | -18%
• Days on market: 16 | +220%
• Inventory: 126 | +21%
• Months’ supply: 2.8 | +40%

Little Falls area

• New listings: 31 | -3%
• Median sales price: $259,000 | -4%
• Pending sales: 26 | -7%
• Days on market: 11 | +83%
• Inventory: 20 | -13%
• Months’ supply: 1.10 | +10%

Southwest Minnesota area

• New listings: 125 | -13%
• Median sales price: $165,000 | +2%
• Pending sales: 87 | -16%
• Days on market: 62 | +32%
• Months’ supply: 2.60 | +30%

Headwaters area

• New listings: 169 | +17%
• Median sales price: $277,450 | +14%
• Pending sales: 102 | -13%
• Days on market: 47 | +12%
• Months’ supply: 2.80 | +47%