Minnesota Housing Market: September 2024 Analysis
The Minnesota housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $348,600, reflecting a year-over-year decrease of 3.2%. This decline suggests a cooling in the market compared to the previous year. Similarly, the Median List Price has seen a slight decrease of 0.8% year-over-year, now at $354,300.
Despite the drop in sales prices, the median Price Per Square Foot has increased by 2.5% year-over-year, reaching $185. This indicates that while overall prices have decreased, the value attributed to each square foot has appreciated. The Median List Price per square foot has also risen by 4.3% year-over-year, now at $190, suggesting that sellers are still optimistic about the value of their properties on a per-square-foot basis.
The number of Homes Sold in September 2024 was 5,281, marking a significant year-over-year decline of 13.5%. This decrease in sales volume could be attributed to various factors, including potential buyers' hesitation due to economic conditions or changes in interest rates. Pending Sales have also seen a slight decrease of 0.8% year-over-year, totaling 5,684.
New Listings have increased by 0.8% year-over-year, with 6,616 homes entering the market. This increase in New Listings, coupled with a 9.3% rise in inventory, which now stands at 13,684, indicates a growing supply of homes available to buyers. The Months of Supply have surged by 50% year-over-year, reaching 2.6 months, suggesting that the market is shifting towards a more balanced state between buyers and sellers.
The Median Days on Market for homes in Minnesota is now 29 days, reflecting a 6% increase year-over-year. This indicates that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio has decreased by 0.6% year-over-year, now at 99.2%, suggesting that homes are selling closer to their list prices than before.
The percentage of Homes Sold above list price has decreased by 6.3% year-over-year, now at 32.3%. This decline indicates a reduction in competitive bidding situations. Price Drops have remained relatively stable, with a slight increase of 0.1% year-over-year, now at 34.5%. Additionally, the percentage of homes going off the market within two weeks has decreased by 2.6% year-over-year, now at 40.9%.
Overall, the Minnesota housing market in September 2024 reflects a shift towards a more balanced environment, with increased inventory and longer days on market. While sales prices have decreased, the appreciation in Price Per Square Foot suggests that property value remains strong. Buyers may find more opportunities with the increased supply, while sellers may need to adjust expectations in a less competitive market.
