In October 2023, the Minnesota housing market saw significant changes, according to the Minnesota REALTORS®. Let's explore the key metrics to gain insights into the state's real estate landscape. The current data suggests that the housing market in Minnesota is leaning towards a buyer's market.
The increase in the months supply of inventory indicates a greater availability of homes for buyers to choose from, potentially leading to more favorable conditions for negotiations. Contrary to a drop, the data reveals a rise in median sales prices by 3.1% in October 2023. However, it's important to note that the year-to-date increase is a more modest 1.5%, indicating a relatively stable but not overwhelmingly bullish trend in home prices.
Minnesota Housing Market Trends 2023
The following data reflects the housing market trends for the entire state, comparing the metrics between 2022 and 2023.
- New Listings: In 2023, there were 7,180 new listings, marking a 3.2% increase from 2022. However, on a year-to-date basis, there was a significant decline of 12.8%, with 76,419 new listings compared to 87,611 in the same period last year.
- Pending Sales: The number of pending sales decreased by 3.7% in October 2023, with 5,192 pending sales. On a year-to-date basis, the decline was more pronounced at 15.7%, with 57,443 pending sales compared to 68,180 in the previous year.
- Closed Sales: October 2023 witnessed a 7.1% decrease in closed sales, totaling 5,794. The year-to-date figures showed an 18.4% decline, with 55,544 closed sales compared to 68,104 in 2022.
- Median Sales Price: The median sales price experienced a 3.1% increase in October 2023, reaching $330,000. However, the year-to-date change was a modest 1.5%, with the median sales price rising from $330,000 to $335,000.
- Percent of Original List Price Received: While the percent of the original list price received remained steady at 97.5%, there was a slight decrease of 1.7% in the year-to-date figures, dropping from 100.6% to 98.9%.
- Days on Market Until Sale: The days on market until sale increased by 2.8% in October 2023, reaching 37 days. On a year-to-date basis, there was a more significant rise of 16.1%, from 31 days to 36 days.
- Months Supply of Inventory: The months supply of inventory saw a substantial increase of 23.8%, rising from 2.1 to 2.6 in October 2023.
Why are houses in MN so expensive?
The increase in housing prices can be attributed to various factors, including demand exceeding supply, desirable living conditions, a strong economy, and low mortgage rates. Additionally, factors like location, amenities, and housing demand can contribute to higher housing costs in Minnesota.
Minnesota Housing Market Forecast 2023-2024
The Minnesota housing market is experiencing noteworthy trends, as per the latest data from Zillow. As of November 30, 2023, the average home value in Minnesota stands at $324,215, reflecting a significant increase of 1.6% over the past year.
Key Metrics:
- Average Home Value: $324,215 (Up 1.6% over the past year)
- Days to Pending: Approximately 24 days
Inventory and Listings:
- For Sale Inventory (Nov 30, 2023): 15,221
- New Listings (Nov 30, 2023): 4,969
Median Sale Statistics (Oct 31, 2023):
- Sale to List Ratio: 1.000
- Median Sale Price: $316,033
List Price Details (Nov 30, 2023):
- Median List Price: $337,167
- Percent of Sales Over List Price (Oct 31, 2023): 40.8%
- Percent of Sales Under List Price (Oct 31, 2023): 38.8%
Minnesota Areas Where Home Prices Are Expected to Drop in 2024
The Zillow forecast for 2024 indicates potential declines in home prices in specific regions within Minnesota. These projections are based on data for different metropolitan statistical areas (MSAs) and provide insights into the expected changes in property values.
- Grand Forks, ND (MSA) - Minnesota: The forecast for Grand Forks reveals a projected decline in home prices, with a decrease of 0.5% by the end of 2023, followed by a more substantial drop of 1.8% by February 29, 2024, and a notable decline of 5.6% by November 30, 2024.
- Marshall, MN (MSA) - Minnesota: In Marshall, a slight decrease of 0.2% is anticipated by the end of 2023, with a further decline of 0.7% by February 29, 2024, and a more pronounced drop of 3.5% by November 30, 2024.
- Minneapolis, MN (MSA) - Minnesota: The forecast for Minneapolis indicates a moderate decrease in home prices, with a projected decline of 0.2% by the end of 2023, followed by a 0.9% decrease by February 29, 2024, and a 3% drop by November 30, 2024.
- New Ulm, MN (MSA) - Minnesota: New Ulm is expected to see stable prices by the end of 2023, but a decline of 0.9% is projected by February 29, 2024, and a further decrease of 2.8% by November 30, 2024.
- Rochester, MN (MSA) - Minnesota: The forecast for Rochester indicates a slight decrease in home prices, with a projected decline of 0.2% by the end of 2023, followed by a 0.7% decrease by February 29, 2024, and a 2.1% drop by November 30, 2024.
Please note that the above information is based on the latest available data and forecasts. It's always advisable to consult with real estate professionals and conduct thorough research before making any decisions in the housing market.
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