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Hey Twin Cities homeowners and future homeowners, Dan Winters here with The Winters Real Estate Group & I’m going to tell you what’s going on in our real estate market for the month of August 2023.

Let’s start by looking at the year over year statistics:

Our new listings are down 18.9%

pending sales are down 25.4%

and closed sales are down 27.2%

Our days on market (or how long a home is on until it goes into Pending status or closes) are up year over year 58.3% to 19 days for the 2nd month in a row.

Keep in mind, when I started over 10 years ago the median days on market was almost 40.

Our months supply of homes has increased 38.5% to 1.8 months

Although we have a 38.5% increase year-over-year with our month supply, we're still only at 1.8 months.  Now what does supply mean? Let me break that down for you. Even though we have a 38.5% increase year over year with our months supply, we're still only at 1.8 months. Keeping the Twin Cities real estate market in a seller's market. 1.8 months means that in 1.8 months we are out of a job if we stop listing houses today. 

Our median sales price has held steady for the 3rd month in a row at $364,000 which is a 3.3% increase from the previous year- still within the “normal” range of appreciation.

Interest rates continue to be a hot topic for real estate professionals and consumers alike. Coming into the fall of 2023 we have been in the range of interest rates that we've been seeing since fall of 2022. What we’ve seen is more buyers “settling into” what rates are today and they are recognizing that the days of 3% interest rates are behind us and that this is the new reality as they move forward. 

So what does this mean for home sellers?

Although appreciation has slowed back down to what we call normal, your property (depending on location, style and condition) is still appreciating.

Pricing and positioning are going to be just as important as ever. Understanding where the market is TODAY (the homes available, the buyer's mindset, interest rates, etc) and making sure that you are pricing for TODAY's real estate market not yesterday's is still very very crucial.

For buyers:

We have to look at the fact that even with rising interest rates, our showing traffic continues to be strong; so competition for homes that are actually on the market is just as tough as it has been.

Buyers should continue to plan to cover your own closing costs, and expect to pay at or slightly above the asking price here in the Twin Cities.  Now, this will vary on a handful of factors, like how many days the property has been on the market, have they done price reductions, the condition and the location of the home just to name a few. 

Now, this is for everyone:

Buying or selling real estate is not and should not be a split-second decision, nor is it a one-size-fits-all thing. The only time it's a great time to buy or sell is if it actually makes sense to you. 

So, if you're open to it, and you want to sit down with us for your free strategy session, go ahead and give us a call, or shoot us a text at the number on the screen, or connect with us via email. 

And do us a favor, if you found any part of this valuable, if you have any questions or opinions, or if you're anything like me, and just want to stay up-to-date on all things Twin Cities real estate, like, comment, and subscribe.

We at The Winters Real Estate Group look forward to being your real estate resource here in the Twin Cities.