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March 2024 Housing Market Report

By MNR News posted 04-15-2024 10:00 AM

  
Spring market is in full swing, thanks to higher sales and more listings

  • New listings up 7.3%; pending sales rose 11.0% 

  • The median sales price increased 4.7% to $335,000 

  • The average market time was down 3.9% to 49 days 

(Apr. 15, 2024) – According to new data from Minnesota Realtors®, home buyer and seller activity rose compared to March of 2023. Home prices also increased, and buyers saw more listings.

Market Activity
With spring upon us, a growing number of Minnesotans are looking to buy and sell homes. Statewide, we’ve seen six consecutive months of year-over-year increases in new listings and four consecutive increases in pending sales. During the first quarter (i.e., YTD), seller activity rose 19.2%, while pending sales were up 10.8%. Since listings have risen faster than sales, inventory levels also continued their ascent—this time up 13.4% to 11,154 active listings. The inventory rise means those shopping for a home will see more options that meet their needs. There’s been a backlog of buyers and sellers accruing from when mortgage rates spiked throughout 2022. Some would-be sellers are still staying put and clinging to their low-interest rate, but the backlog is starting to be released. Many Minnesotans are adjusting to the current rate environment, but the dual affordability and supply challenges have held back too many from homeownership—particularly first-time buyers.

Realtors® are reporting multiple offer situations in some areas and segments. Depending on the rate environment, that could pick up again. The median home price in March was up 4.7% to $335,000, the most significant gain since November. Listings spent about 49 days on the market, down 3.9% from last March. Sellers accepted offers at 97.9% of their asking price, which was level with last year. “Spring market is in full swing,” said Geri Theis, President of Minnesota Realtors®. “The good news is that listings are on the rise. This means buyers have more choices, which is a positive. However, we’re still well short of a balanced market, with just two months of supply available. Navigating a competitive spring market comes with challenges and opportunities for both buyers and sellers, which is why it’s so important to work with a Realtor®.”

Regional Dynamics
Market activity always varies across areas, price points, and property types. The Detroit Lakes, Alexandria, and Brainerd regions saw the largest gains in listing activity, while pending sales were up the most in the Bemidji, Alexandria, St. Cloud, and Brainerd regions. Home prices rose the most in the Fergus Falls, Alexandria, and Detroit Lakes regions. The most balanced markets were Detroit Lakes and Bemidji, while the most undersupplied markets were Rochester, St. Cloud, and the Twin Cities.
Twin Cities Metro Overview 

From downtown high rises to pastoral family farms, Minnesota has something for everyone. Although metro prices were higher, statewide home prices rose faster. Both new listings and sales had a stronger gain statewide than in the metro. Twin Cities home sellers got 98.8% of their list price after 54 days compared to 97.9% in 49 days statewide. With a stubbornly low 1.8 and 2.0 months of supply in the metro and state, respectively, the housing supply shortage and affordability challenges affect every region of the state. Yet, there are encouraging signs for the year ahead. 

Regional year-over-year closed sales for March 2024:

State and metro key market indicators year over year for March 2024:

All information is according to Minnesota Realtors® based on data from NorthstarMLS and other MN MLSs. Data is deemed reliable, but not guaranteed.  

To read our full March 2024 Housing Report, click here.

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