Months supply of inventory was low, mostly in the 2-month range but pretty steady in 2017-2018-2019… then it dropped to hang persistently in the 1-month range in the pandemic years 2020-2021-2022. It has been in the low 2-month range since June 2023, and September is the highest it has been all year.
It gives some rays of hope to buyers for increasing inventory. What it doesn’t take into account is that closed sales are falling more than new listings are coming in and rising interest rates since June 2022…
…meaning properties are staying on the market longer, allowing the inventory to grow even though it has been below last year every month starting in May this year.
Low inventory is feeding competition and multiple offers are higher than last year at this time… driving median sales price up to $370,305 in September 2023. Average sales price was 99.3% of list price.
Months supply of inventory, which takes into account both the number of homes for sale and the rate at which they are selling, was 2.3 months in September, the highest it has been since before the pandemic. Condos have the highest months supply, townhouses the lowest supply.
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
RELATED POSTS
