February 2024 real estate market update… inventory and prices are rising

New listings in February 2024 were 34.5% higher than February 2023. Pending and closed sales also grew, but not as much as new listings… resulting in an increase in inventory.

There were more homes on the market the first two months of 2024 than there were in January, February, March and April the last two years.

But it still isn’t enough to keep up with buyer demand and months supply of inventory has been holding steady for the last 3 months at 1.8 months supply… still far below a balanced inventory of 5-6 months indicated by the red line on the graph below.

This means there is still competition for listings, and the percent of multiple offers is higher than last year. Keep in mind there is no way to accurately track all multiple offers so there are likely more than what I show, but ‘multiple’ offers are often indicated in agent comments, which at least gives an indication.

Multiple offers drive up prices, which continue to rise as days on market before pending comes down a bit. Percent of list price received is below 100%, but 0.3% above last year at 97.5%. Median sale price rose 4.5% over last February to $357,700.

At 4.5%, percent year-over-year price increase was the highest since 2022.

Breaking it out by price range, the $250k-$350k range has the lowest supply at 1 month. All price ranges under $1M+ have less than a 3 month supply. Condos are the housing style with the highest supply, at 2.9 months.

Months supply of previously owned homes has increased 44.4% compared to last year, while the months supply of new construction homes has fallen 19.4%.

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

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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