December 2024 real estate market update… sales up, inventory down

New listings were up 6.4% in December 2024 compared to December 2023. But sales were up even higher… pending sales up 6.2% and closed sales up 14.1%… resulting in a year-over-year drop in inventory for the first time in 2024.

This also fueled an increase in trackable multiple offers… a higher percentage than in 2022 and 2023. Personal experience I can attest to is the showing and offer frenzy on a new listing of mine that became Active in the MLS this week… we had 22 showings the first day yesterday and are still collecting offers through today. It is a great house in a great location, but the shortage of inventory is also helping feed the frenzy.

Overall, days on the market before pending increased 9.8% to 56 days, the percent of list price received increased 0.3% to 97%, and median sales price increased 4.6% to $370,000.

The impact of all this activity was another drop in months supply of inventory to 1.8 months, 5.3% lower than last year… clearly lower than the red line on the graph below that shows an inventory supply balanced between buyer and seller.

Breaking it out by price range, all price ranges showed a drop in supply. It continues to be a seller’s market in all price ranges, even prices over $1M with a supply of only 4.1 months. Months supply of condos continues to be higher than townhouses or single family homes.

Supply of both existing and new construction homes is down compared to last December.

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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