That was both the smallest increase in median price and the largest increase in market times since last July. On average, sellers accepted 99.4% of their list price, which is down from last June but on-par with 2018-2020 levels. “While many buyers and sellers have found success, others have been frustrated by this spring market,” said Geri Theis, President of Minnesota Realtors®. “There are some encouraging signs that rates could decrease yet this year, and we’ve already seen more supply become available. Affordability remains a key challenge for buyers, and for sellers who turn around to become buyers.”
Regional Dynamics
Market activity always varies across areas, price points, and property types. Alexandria and Grand Rapids were the only areas with more new listings than last year. Pending sales were down across the board; sales in the Grand Rapids region were essentially flat. Home prices rose the most in the Willmar, St. Cloud, and Rochester regions. The largest price declines took place in the Detroit Lakes and Alexandria areas. The most balanced markets were Detroit Lakes and Bemidji while the most undersupplied markets were Rochester, St. Cloud, and the Twin Cities metro.
Twin Cities Metro Overview
Home prices are higher in the metro, but homes are selling more quickly in greater Minnesota. Both new listings and sales slid less in the metro compared to statewide. Twin Cities home sellers accepted 100.1% of their list price in 34 days compared to 99.4% in 33 days statewide. The metro had 2.4 months of supply while there were 2.6 months of inventory statewide. As has been the case, those shopping for homes face the twin hurdles of undersupply and lack of affordability. These headwinds are impacting virtually every county, city, and neighborhood across the state. Yet there are some hopeful signs of relief when it comes to easing interest rates and more inventory in the months ahead.