March 2024 Market Insights

Key insights from Feb. 2024 (compared to Feb. 2023)*

• New listings: 4,667 | +34.5%
• Median sales price: $357,700 | +4.5%
• Closed sales: 2,614 | +11.2%
• Pending sales: 3,308 | +13.1%
• Days on market: 59 | -3.3%
• Inventory: 6,665 | +13.3%
• Months’ supply: 1.8 | +28.6%

The highlights

• Current home sales have exceeded the predictions of economists’ 2024 expectations.
• The Twin Cities has seen a 34.5% year-over-year increase in new listings, bringing the months’ supply up to 1.8 months.
• Pending sales were up 13.1% with an increase in median sales price and decrease in days on market.
• Demand continues to surpass home supply; additional inventory is needed to create a balanced market.

Economists predicted that 2024 would see improvements in the real estate market. While some tried to temper expectations about this forecast, the reality has proven to be even better than anticipated. February had the strongest sales pace since August 2023 thanks to a 3.1% month-over-month improvement in existing-home sales, bringing a seasonally adjusted annual rate of 4.00 million.

More regionally, the Twin Cities area saw a 34.5% year-over-year increase in new listings with pending sales raising 13.1%. In addition, inventory increased 2% from the previous month creating a 3 month’s supply at the current sales pace.

This improvement is thought to be caused by falling interest rates and an increase in inventory, giving sellers and homeowners the confidence to list and purchase. Home sellers benefited from a 5.1% year-over-year increase in median sales prices and modest decrease in days on market from 61 to 59 days.

However, despite the gains seen so far in 2024, there is still a long road ahead in creating a balanced real estate market. The demand for homes far exceeds the current inventory, and months’ supply is still well below the 5-6 months needed for a balanced market.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.0% (as of January 2024)
• Average rates for 30-year conforming mortgage 6.74%**

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 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: 76 | +62%
• Avg. sales price: $283,366 | +4%
• Pending sales: 45 | +32%
• Days on market: 55 | -23%
• Inventory: 155 | +65%
• Months’ supply: 2.20 | +83%

Brainerd area

• New listings: 389 | +56%
• Avg. sales price: $309,107 | +2%
• Closed sales: 179 | -1%
• Days on market: 61 | +5%
• Inventory: 838 | +49%
• Months’ supply: 2.20 | +69%

Lake Superior area

• New listings: 241 | +73%
• Avg. sales price: $267,130 | -6%
• Pending sales: 153 | +22%
• Days on market: 53 | +26%
• Inventory: 597 | +45%
• Months’ supply: 2.30 | +53%

Southeast Minnesota area

• New listings: 374 | +25%
• Avg. sales price: $308,919 | +13%
• Closed sales: 292 | +30%
• Days on market: 61 | +7%
• Inventory: 669 | +13%
• Months’ supply: 1.60 | +23%

St. Cloud area

• New listings: 109 | +16%
• Avg. sales price: $249,900 | +4%
• Pending sales: 81 | -10%
• Days on market: 57 | +27%
• Inventory: 186 | +29%
• Months’ supply: 1.70 | +42%

Mankato area

• New listings: 111 | +22%
• Avg. sales price: $256,319 | +6%
• Pending sales: 88 | +4%
• Days on market: 90 | -9%
• Inventory: 286 | +24%
• Months’ supply: 2.00 | +33%

Northwestern Wisconsin area

• New listings: 577 | +56%
• Avg. sales price: $276,899 | -9%
• Closed sales: 198 | +13%
• Days on market: 97 | -5%
• Inventory: 1,013 | +18%
• Months’ supply: 3.10 | +48%

West Central Minnesota area

• New listings: 192 | +39%
• Avg. sales price: $198,760 | -6%
• Pending sales: 146 | +6%
• Days on market: 71 | +1%
• Inventory: 508 | +44%
• Months’ supply: 2.40 | +50%

Bemidji area

• New listings: 40 | +33%
• Median sales price: $275,000 | +62%
• Pending sales: 28 | +27%
• Inventory: 98 | +42%
• Months’ supply: 2.20 | +47%

Leech Lake and surrounding area

• New listings: 46 | +77%
• Median sales price: $339,000 | +56%
• Pending sales: 32 | +19%
• Days on market: 27 | +238%
• Inventory: 124 | +118%
• Months’ supply: 3.00 | +150%

Little Falls area

• New listings: 13 | +18%
• Median sales price: $221,250 | +9%
• Pending sales: 18 | +13%
• Days on market: 30 | -27%
• Inventory: 20 | +43%
• Months’ supply: 1.10 | +57%

Southwest Minnesota area

• New listings: 79 | +58%
• Median sales price: $160,000 | No change
• Pending sales: 53 | +15%
• Days on market: 82 | +8%
• Months’ supply: 2.80 | +56%

Headwaters area

• New listings: 64 | +60%
• Median sales price: $293,500 | +47%
• Pending sales: 28 | -10%
• Days on market: 78 | -15%
• Months’ supply: 2.90 | +71%