After a long history of sale prices averaging lower than list price, the last two years spiked above average, with May 2021 sale prices peaking at an average of 104.1% of list price. Then rising interest rates hit last summer, causing them to drop. As buyers became accustomed to the ‘new normal’ and the inventory shortage became more acute sale prices rose again, settling about about 101% of list price the last two months.
Median sale price for June 2023 was $382,000, a nice jump up from May but only 0.5% over June 2022.
But year-over-year changes in median price are well below the fairy tale increases they have been the last two years.
It should come as no surprise that multiple offers are still strong as buyers compete to be the winning offer.
New listings are down 16.5%, pending sales are down 10.8%… resulting in fewer options
After increasing inventory last year, the last two months showed declining inventory, with June 2023 13.4% lower than June 2022.
Months supply of inventory, which takes into account both the number of homes for sale and the rate at which they are selling is up to 2.0 months in June. It is the highest since last fall, but still far from a balanced market at 5-6 months. Only prices over $1M have a balance between buyers and sellers with a 6.4 month supply. The supply of condos is about twice that of single family homes 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.
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Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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