April 2023 real estate market update… year over year median home sales price drops 0.7%

Last month median home sales price was $355,000, about the same as the previous year. This month, April median home sales price was $367,500… 0.7% below last April median home sales price of $370,000.

It’s not a big drop, and likely affected more by homebuyers readjusting their purchase price down because of rising interest rates than the falling of individual home prices, but nevertheless it looks like it could be the start of a new trend. April 2023 was the first month in many years that showed negative growth.

Percent list price received is back up to 100.1%… not as high as last year but still reflecting the intense competition caused by the inventory shortage.

It should come as no surprise that with sales prices averaging higher than 100% of list price multiple offers are increasing. NAR reports that nationally about 30% of sales included multiple offers. In our market I track multiple offers by the word ‘multiple’ in the agent notes in the listing… far from perfect, but at least it gives an indication. Using this measure, 16.5% of MLS listings posted multiple offer deadlines.

New listings, pending sales and closed sales in April 2023 all dropped compared to April 2022.

Days on the market again increased more than 60%, to an average of 45 days on the market until pending. Percent of list price received was about 100% and median sales price decreased just a little.

Inventory decreased for the first time in twelve months in April 2023. The shortage of inventory is what is keeping sales competitive in spite of a decrease in sales.

Months supply of inventory can be argued to be the best indicator of the market, and overall months supply of inventory increased by 25% in April 2023. It is still only a 1.5 month supply, however. We still have a long way to go to get to a balanced inventory of 5-6 months supply. There are about twice the supply of condos as houses and townhouses.

The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.

Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.

Click here for local reports on 350+ metro area communities

Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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