Minnesota Housing Market Analysis - July 2024
The Minnesota housing market in July 2024 presents a nuanced picture with several key indicators showing varied trends. Below is a detailed analysis of the current market conditions.
Median Sales and List Prices
The median sales price for homes in Minnesota stands at $359,900, reflecting a slight decrease of 0.6% year-over-year (YoY). Similarly, the median list price is $362,400, down by 0.7% YoY. This marginal decline in prices suggests a stabilization in the market, potentially offering opportunities for buyers.
Price Per Square Foot
Despite the slight drop in overall prices, the median price per square foot has increased by 2.4% YoY to $188. The median list price per square foot has also seen a notable rise of 4.4% YoY, reaching $190. This indicates a growing demand for smaller, more affordable housing options.
Sales and Inventory
The number of homes sold in July 2024 is 6,367, marking a 2.0% increase YoY. However, pending sales have decreased significantly by 11.0% YoY, totaling 6,337. New listings have seen a slight decline of 0.5% YoY, with 7,365 new properties entering the market. Inventory levels have risen by 9.8% YoY to 12,686 homes, suggesting a shift towards a more balanced market.
Market Dynamics
The months of supply, a critical indicator of market balance, has increased by 10.0% YoY to 2.0 months. This rise indicates a slight shift towards a buyer's market. The median days on market have also increased by 4.0% YoY to 22 days, suggesting that homes are taking slightly longer to sell.
Sale to List Ratios and Price Adjustments
The average sale to list ratio is 99.9%, down by 1.1% YoY, indicating that homes are selling very close to their list prices. The percentage of homes sold above list price has decreased by 10.0% YoY to 38.0%, reflecting a cooling in competitive bidding. Price drops have increased by 4.1% YoY to 34.2%, suggesting sellers are adjusting their expectations to align with market conditions.
Off-Market Trends
The percentage of homes going off-market within two weeks has decreased by 4.4% YoY to 45.5%. This decline indicates that homes are staying on the market longer, providing buyers with more options and time to make decisions.
In summary, the Minnesota housing market in July 2024 shows signs of stabilization with slight declines in median sales and list prices, increased inventory, and longer days on market. These trends suggest a shift towards a more balanced market, offering opportunities for both buyers and sellers.
