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Hey Twin Cities homeowners and future homeowners!

As we hit peak summer here in Minnesota there are some interesting things happening locally in our real estate market that you won’t get from national headlines.

Let’s jump into the stats so we can get to the good stuff: 

• New listings were down in the 7 county metro area 18.9% to just 50,197 new homes coming to market

• Both pending sales (or those that have cleared any sort of contingencies like inspection, HOA doc review, etc) & closed sales were both down as well. 25.8% and 25.9% respectively while our homes for sale (those left over at the end of the month) increased 7.9% to just 6,111 homes. 

• Our days on market continue to creep upwards to 18 days (an increase of 63.6% from the previous year) and our months supply (or how many months it would take to sell all the homes on the market) crept up to 1.7 months (an increase of 41.7% from the previous year).

• The median sales price for the 7 county metro area held steady at $365,000 (an increase of 2.8% from last year), slightly down from $367,500 in March.  

So you might be asking yourself, “Self, What does this even mean?” 

For sellers: 

While we are still seeing incredibly low inventory rates (homes for sale), we are starting to see the days on market creep up ever so slightly, our median sales price did drop (a whopping $2,500) & the buyer pools have shrunk with interest rates in the mid to high sixes.  Pricing appropriately for today’s market is more important than ever. We can’t use the unicorn pandemic years (2020 through the first half of 2022) as a gauge, we really need to look back to 2018 & 2019 as we continue to move forward. 

For buyers: 

There is a window of opportunity where you don’t have to compete like others did in the unicorn years of the pandemic. Higher interest rates have caused a lot of buyers to take a seat on the sideline and wait for rates to come back down.  
With inventory levels at just 1.7 months, we are still in a seller’s market- the same market we’ve been in since February of 2013 when we had 3.9 months of inventory. Remember, a balanced market is when we have between 4-6 months of inventory; above 6 months then we move into a buyers market (which hasn’t happened since March 2012).

So even with increasing days on market and a slightly lower median sales price (spurred on by higher interest rates and less buyers competing in the market) as a home buyer in today’s market, you can most likely expect to pay close to if not above the asking price and expect to pay your own closing costs. Now, there are certainly outliers, but they aren’t the norm. 

For both buyers and sellers: 

Buying or selling real estate is not (or 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 makes sense for  you. 

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 612-200-0808 or connect via email: connect@thewintersregroup.com

And do us a favor, if you found any part of this valuable, if you have any questions/opinions or if you’re anything like me and want to stay up to date on all things Twin Cities real estate, comment below & share this with your friends!