Minnesota Housing Market Analysis - August 2024
The Minnesota housing market in August 2024 presents a challenging situation with several key metrics showing both positive and negative trends compared to the previous year.
The Median Sales Price for homes in Minnesota stands at $358,500, reflecting a slight decrease of 0.2% year-over-year (YoY). Similarly, the Median List Price is $358,300, down by 0.1% YoY. Despite these minor declines, the median Price Per Square Foot has surged by 15.1% YoY to $278, indicating a significant increase in the value buyers are willing to pay per unit area. The Median List Price per square foot also saw an increase, rising by 5.3% YoY to $191.
In terms of sales activity, the number of Homes Sold in August 2024 was 6,533, marking a notable decline of 8.5% YoY. Pending Sales also dropped by 11.1% YoY to 6,059, and New Listings decreased by 8.1% YoY to 7,048. However, inventory levels have risen by 8.7% YoY to 13,098, suggesting that more homes are available on the market compared to the same period last year. The Months of Supply metric, which indicates how long it would take to sell all the current inventory at the current sales pace, has increased by 30.0% YoY to 2.0 months.
The Median Days on Market for homes in Minnesota is now 27 days, up by 6.0% YoY, indicating that homes are taking slightly longer to sell. The average sale to list ratio is 99.4%, down by 0.9% YoY, suggesting that homes are selling very close to their list prices but with a slight decrease in the ratio. The percentage of Homes Sold above list price has dropped significantly by 10.3% YoY to 33.1%, indicating a cooling in competitive bidding.
Price Drops have increased by 1.3% YoY to 34.6%, suggesting that sellers are more frequently adjusting their expectations to meet market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 4.9% YoY to 44.1%, further indicating a slower market pace.
Overall, the Minnesota housing market in August 2024 shows a mix of rising inventory and slower sales activity, coupled with stable but slightly declining prices. These trends suggest a market that is adjusting to changing conditions, with buyers and sellers recalibrating their expectations.
