Nationally, 2023 home sales were the lowest since 1996. In the Twin Cities market, the number of sales fell every month compared to the previous year every month since September 2021. It is encouraging to see that not only did closed sales rise a bit in January 2024 compared to January 2023… pending sales also rose… and new listings jumped up significantly.
Days on market until pending dropped year-over-year, while both percent of list price received and median sales price increased compared to last January.
Months supply of inventory is also on the rise, at 1.7 months in January 2024. We still have a way to go to get to a balanced market indicated by the red line on the chart below, but at least we are finally headed in that direction.
A 1.7 month supply of inventory still indicates a short supply… and that means multiple offers haven’t gone away. Although there are as many competing as in the last three years, multiple offers I was able to track in January 2024 were still ahead of 2019 and 2020.
Median sale prices were higher than the beginning of 2022 and 2023…
…but average median sale prices weren’t at crazy amounts over list price.
Comparing year-over-year median sales prices, although a 2.3% increase over last year isn’t a lot it still is much better than last February through July.
Months supply of homes is still low in all price ranges. Condo supply is growing more than the supply of houses and townhomes.
The supply of previously owned homes has grown a significant 20% over January 2023, while the supply of new construction properties has fallen 16.1%. I have heard new construction starts are picking up so I would expect the new construction supply to pick up.
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+ area communities
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
RELATED POSTS
