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For July, the number of homes for sale rose by 12.2% to 15,600 active listings, offering more purchase options for buyers. However, buyers should be aware that shopping in a market with only 2.8 months of supply indicates that most areas, segments, and price points still favor sellers. Four to six months’ supply is typically considered balanced, while fewer months reflect a sellers’ market; more than six months usually indicates a buyer’s market. For comparison, in early 2022, there was one month of supply statewide.  

The median sales price increased 4.1% in July and is up 3.3% this year. Sellers accepted offers around 98.8% of list price (down 1.3%) after 35 days on market (up 20.7%). Market times are still below 2018–2020 levels, while the percentage of list price received is on par with that same period. “The housing market started off strong this year but cooled down unexpectedly. Now, we’re hopeful that lower interest rates will make homes more affordable and boost demand in the second half of 2024,” said Geri Theis, President of Minnesota Realtors®. “Remember that housing is unique and influenced by several economic factors. If interest rates level off, we could see an increase in home buying activity in the coming months.” 

Eager home buyers were excited about the prospect of lower mortgage rates this year. But that didn’t materialize in July. Pointing to affordability concerns, some buyers are pausing their purchases until rates come down. However, those who purchase and refinance later may find less competition and won’t encounter multiple offer situations on every listing. Rates dropped at the beginning of August, which could entice more buyers to the market, creating stiff competition for desirable properties.  

Regional Dynamics
Market activity always varies across areas, price points, and property types—sometimes dramatically. Hibbing/Virginia, Mankato, and Rochester saw the largest gains in new listings. Pending sales were down for all regions except Rochester and St. Cloud. Home prices rose the most in the Hibbing/Virginia region, followed by Grand Rapids and Mankato. Fergus Falls and Bemidji were the only regions where prices softened from last year. The most balanced markets were Detroit Lakes and Bemidji, while the most undersupplied markets were Rochester, St. Cloud, and the Twin Cities metro.