March 2023 Market Insights

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

• New listings: 3,423 | -24.3%
• Median sales price: $342,000 | +0.6%
• Closed sales: 2,295 | -20.3%
• Pending sales: 2,932 | -23.6%
• Days on market: 62 | +40.9%
• Inventory: 5,327 | +7.1%
• Months’ supply: 1.3 | +44.4%

New year, same market: Twin Cities sees high pricing, low activity

The long and the short of it

• Median pricing remains high at $342,000, up 0.6% year-over-year.
• February saw just 2,295 homes sold, a more than 20% drop from February 2022.
• The right homes still attract strong buyer interest, but homes are overall taking longer to sell.

Activity in the 16-county Twin Cities metro real estate market remained measured in February, but well-priced homes in desirable locations continue to garner plenty of interest ahead of the anticipated spring market.

A total of 2,295 home sales closed in February, down 20.3% from the same time period in 2022. That’s about two-thirds the number of sales that happened in February 2021 and is one of the slowest Februarys over the past decade, as buyers continue to be impacted by economic factors out of their control.

But the deals that do happen are still near record levels. The median price of a home sold in February was $342,000, up 0.6% from what was a February record at the time last year. Pricing remained stable from January, which had the same median price. February was a bit more friendly to sellers, though, as they received 97.2% of their original list price, up from January’s 96.0% but down from February 2022, when they received 100.8% of their original asking price.

Pricing remains high in part because of a lower inventory of homes for sale, but that availability continues to rise steadily. There were 5,327 homes listed at the end of February, up 7.1% from February 2022. The listings represent a 1.3-month supply of homes under current market conditions, still far from what experts consider a balanced 5- or 6-month supply.

Would-be sellers continued to hold off on listing their homes in February. Just 3,423 new homes hit the market last month, down 24.3% year-over-year. New listings through the first two months are down 17.5% from 2022.

One factor that may inspire increased activity is the approach of spring. Historically speaking, the warmer months are the busiest in the Twin Cities real estate market, and some Edina Realty Mortgage offices are reporting an uptick in new mortgage applications, a potential sign of new buyers hitting the market.

Interest rates will continue to be key for buyers as we move deeper into 2023, while sellers interested in achieving attractive prices should still be able to do so, but with a bit more patience.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.6% (as of January 2023)
• Average rates for 30-year conforming mortgage 6.60%**

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 February 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: 47 | -13%
• Avg. sales price: $271,166 | +5%
• Pending sales: 34 | -35%
• Days on market: 71 | +34%
• Inventory: 94 | +13%
• Months’ supply: 1.2 | +50%

Brainerd area

• New listings: 250 | -6%
• Avg. sales price: $301,757 | +11%
• Closed sales: 180 | -17%
• Days on market: 58 | +26%
• Inventory: 561 | +34%
• Months’ supply: 1.3 | +44%

Lake Superior area

• New listings: 139 | -23%
• Avg. sales price: $285,559 | +21%
• Pending sales: 125 | -14%
• Days on market: 42 | -5%
• Inventory: 412| +15%
• Months’ supply: 1.5 | +50%

Southeast Minnesota area

• New listings: 300 | -26%
• Avg. sales price: $272,682 | -9%
• Closed sales: 224 | -29%
• Days on market: 57 | +24%
• Inventory: 592 | +35%
• Months’ supply: 1.3 | +63%

St. Cloud area

• New listings: 94 | -10%
• Avg. sales price: $240,081 | +12%
• Pending sales: 90 | -19%
• Days on market: 45 | +7%
• Inventory: 144 | +55%
• Months’ supply: 1.2 | +100%

Mankato area

• New listings: 91 | -20%
• Avg. sales price: $242,409 | +7%
• Pending sales: 85 | -29%
• Days on market: 99 | +9%
• Inventory: 230 | +50%
• Months’ supply: 1.5 | +88%

Northwestern Wisconsin area

• New listings: 371 | -31%
• Avg. sales price: $303,574 | +22%
• Closed sales: 175 | -34%
• Days on market: 102 | +52%
• Inventory: 858 | -11%
• Months’ supply: 2.1 | +11%

West Central Minnesota area

• New listings: 138 | -24%
• Avg. sales price: $210,772 | +10%
• Pending sales: 138 | -29%
• Days on market: 70 | +23%
• Inventory: 353 | +7%
• Months’ supply: 1.6 | +33%

Bemidji area

• New listings: 30 | -17%
• Median sales price: $170,000 | -18%
• Pending sales: 22 | -39%
• Inventory: 69 | +23%
• Months’ supply: 1.5 | +67%

Leech Lake and surrounding area

• New listings: 26 | -7%
• Median sales price: $217,500 | +2%
• Pending sales: 27 | +59%
• Days on market: 8 | -76%
• Inventory: 57 | +10%
• Months’ supply: 1.2 | +20%

Little Falls area

• New listings: 11 | -21%
• Median sales price: $202,500 | +27%
• Pending sales: 16 | +33%
• Days on market: 41 | +64%
• Inventory: 14 | -18%
• Months’ supply: 0.7 | na

Southwest Minnesota area

• New listings: 50 | -22%
• Median sales price: $159,500 | +6%
• Pending sales: 46 | -28%
• Days on market: 76 | +19%
• Months’ supply: 1.8 | +29%

Headwaters area

• New listings: 40 | -31%
• Median sales price: $199,900 | +8%
• Pending sales: 31 | -35%
• Days on market: 92 | +114%
• Months’ supply: 1.7 | +55%