February 2025 real estate market update… closed sales fell 11.8% below last year

US existing home sales fell for the first time since last September. In the Twin Cities, new listings, pending sales and closed sales of all types averaged below below last year.

Days on market continued to increase, percent of list price received increased a little, and the inventory shortage continued to fuel a rise in median sales price of 6.1% over 2024, to $380,000.

More than 11.3% of listings closed with multiple offers. The first questions when buyers see a home of interest is… how many offers? when is highest and best due?

I find it fascinating that overall months supply of inventory held steady at 1.9 months for 3 months in a row… December, January and February… both last year and this year!!

The $250k-$350k price range continues to have the lowest supply, with only 1.2 months. The supply of townhomes and condos is increasing, with condos now up to a 4 month supply.

The supply of previously owned homes was the same as last year, but new construction home supply increased 3.8%… in time for the Spring Parade of Homes.

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.

Check with your Realtor for information on what is happening in your neighborhood.

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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