Contrary to predictions that home sales would fall, national existing home sales rose 4.2% in March. The Midwest continues to be more insulated and sales remained unchanged.
In the Twin Cities region, new listings increased 12.1% and pending sales were up 5.5% while closed sales dropped a meager 1.1%.
This resulted in an overall inventory increase of 2.1%. What I have always thought is a more clear indication of the market is not just the amount of inventory but the rate at which it is selling… the months supply of inventory. While this is trending upward overall, March was flat compared to last year, with a 2.0 months supply. Nationally, there was a 3.5-month supply.
Our lower supply continues to fuel buyer competition and prices continued to rise. While days on market increased 5.5% to 58 average days before pending, percent of list price received increased to 99.0% and median sales price increased 3.5% to $380,000.
You can see in the graph above that 2022 was part of the ‘unicorn’ years, when average sale price was 102.7% over list price. While those days are gone, buyers are still paying top dollar and we can document that at least 13.6% of March sales closed with multiple offers. My experience shows that while it wasn’t uncommon to have 10 or more offers for a listing in 2022, current multiple offers are more modest. Many buyers are unwilling to get involved in bidding wars, but by the same token they are willing to pay close to asking price even without competition.
Breaking out supply by price range and type, homes in the $250k-$350k price range are in shortest supply, and condos are type with the biggest supply.
Spring Parade of Homes saw many eager buyers, who brought year-over-year increase in supply of new construction homes down below than that of pre-exiting 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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