Multiple offers are still strong, in fact a higher percentage of sales closed with multiple offers stated in the listing this July than last July. There aren’t as many buyers competing but the competition is still there due to low inventory. In the height of competition in 2021, 18.6% of sales closed with multiple offers. Last year in 2022, 17.7% of sales had multiple offers. And this year, in 2023, 18.3% of sales had multiple offers in spite of higher interest rates.
This trend is fed by a decrease in new listings, resulting in a drop in closed sales… not because buyers aren’t interested, but because of the lack of listings that buyers want. As much as they are willing to compete for desirable listings, they are not willing to buy just to buy anything.
Overall days on market was 29 days in July 2023, ahead of the last two years but still significantly lower than July 2020.
After more than 10 years of increasing prices, this year’s median sales price tied with last year and prices appear to be leveling off.
Likewise, average percent above list price was lower last year at 100.8%… but still above list price.
July showed the biggest year-over-year change in total homes for sale in the last 12 months… again, a sign that potential buyers are still buying homes when they find what they like.
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 2.1 months in July. It is the highest since before the pandemic, but still far from a balanced market at 5-6 months. Breaking it out by price range, only prices over $1M have a balance between buyers and sellers at 6.3 months.
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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