The sinking prices many buyers were waiting for haven’t materialized, as prices continue their modest year-over-year price gains due to low inventory.
New listings, pending and closed sales have all been lower than last year every month this year, with October showing the smallest year-over-year drop.
With closed sales dropping more than new listings, we are finally seeing a little increase in months supply of inventory, which takes into account both the number of homes for sale and the rate at which they are selling. It is considered balanced at 5-6 months. After hanging persistently below a two-month supply for a couple years, overall supply is finally over 2 months. It is still a seller’s market, but not as strong as it has been in recent years.
This increase in supply has also led to increased days on the market and average percent of list price received dropping below 100%.
Percent of multiple offers is softening, but is still higher than pre-pandemic levels and influencing increases in median sales prices.
Looking at supply by price range shows $150k-$350k still has the lowest supply, all under 2 months, and prices over $1M are at a balanced level of 6 months supply. Condos have the highest supply by type, townhouses the lowest.
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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