Minnesota Housing Market: A Detailed Analysis for November 2024
The Minnesota housing market in November 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes stands at $347,900, reflecting a slight decrease of 0.7% year-over-year (YoY). This decline in sales price contrasts with the Median List Price, which is $341,000, showing a more significant drop of 3.1% YoY. These figures suggest a potential softening in seller expectations or increased buyer negotiation power.
Interestingly, the median Price Per Square Foot has risen to $183, marking a 4.0% increase YoY. Similarly, the Median List Price per square foot is $187, also up by 4.0% YoY. This indicates that while overall prices may be slightly down, the value attributed to the space itself is appreciating, possibly due to demand for more efficient or desirable layouts.
In terms of sales activity, 4,900 homes were sold, representing a 3.2% increase YoY. Pending Sales also saw a rise, with 4,406 transactions pending, up by 2.6% YoY. However, New Listings have decreased by 6.0% YoY, totaling 3,786. This reduction in New Listings could be contributing to the increased competition among buyers, as evidenced by the slight uptick in inventory by 1.3% YoY to 11,439 homes.
The Months of Supply, a critical indicator of market balance, has decreased by 10.0% YoY to 2.3 months. This suggests a tighter market, potentially favoring sellers despite the overall price adjustments. The Median Days on Market have increased by 6.0% YoY to 36 days, indicating that while homes are selling, they are taking slightly longer to do so compared to the previous year.
The average sale to list ratio is 98.7%, showing a minor decrease of 0.2% YoY. This suggests that homes are selling very close to their list prices, although slightly less so than last year. The percentage of Homes Sold above list price has decreased by 3.5% YoY to 28.0%, further indicating a shift in market dynamics where buyers may have more leverage.
Price Drops have occurred in 29.3% of listings, a slight decrease of 0.6% YoY, suggesting that sellers are adjusting their expectations to align with market conditions. Additionally, 31.7% of homes went off the market within two weeks, a marginal decrease of 0.2% YoY, indicating that while some homes are selling quickly, the pace has slightly slowed.
Overall, the Minnesota housing market in November 2024 is characterized by a mix of declining prices and increased sales activity. The market appears to be adjusting to a new equilibrium, with buyers gaining some ground in negotiations, yet still facing a competitive environment due to limited New Listings and a reduced Months of Supply. This nuanced picture suggests that both buyers and sellers need to be strategic in their approach to navigate the current market conditions effectively.
