According to the Minnesota real estate agents and professionals, in October 2023, Minnesota’s housing market saw notable changes. We’ll examine the most critical metrics to understand Minnesota’s real estate market better. According to the current data, Minnesota’s housing market is headed toward a buyer’s market.
Increased months of supply indicate that more homes are available for buyers, which could lead to better negotiation conditions.
In October 2023, data shows that instead of a fall in prices, it has risen by 3.1%. It’s also important to note the modest increase of 1.5% in year-to-date home prices, which indicates a reasonably stable, but not overly bullish, trend.
Minnesota Housing Market Trends 2023
The data below reflects trends in the housing market for the entire state. It compares metrics between 2022 and 2023.
- New Listings There were 7,180 listings in 2023. This represents a 3.2% rise from 2022. On a year-to-date basis, however, there has been a significant drop of 12.8%, with 76,419 new listings, compared to 87,611 in the same period last year.
- Pending sales: In October 2023, pending sales decreased by 3.7% to 5,192. The decline in pending sales was even more dramatic on a year-to-date basis.
- Closed sales: In October 2023, closed sales totaled 5,794. Year-to-date, the figures show a decline of 18.4%, with 55 544 closed sales as opposed to 68 104 in 2022.
- Median Sale Price: In October 2023, the median sales price increased by 3.1% to $330,000. The median sales price increased from $330,000 to $335,000.
- Percentage of Original List Price Received: Although the original list price received has remained constant at 97.5%, there has been a slight drop of 1.7% from the year-to-date figures.
- Days On Market Before Sale: In October 2023, the days before sale increased by 2,8%, reaching 37. Year-to-date, the increase was 16.1% from 31 to 36 days.
- Inventory Months: In October 2023, the months’ supply of inventory increased by 23.8%. It went from 2.1 to 2.66.
Why are homes in Minnesota so expensive?
Housing prices are rising due to several factors. These include high demand, low supply, favorable living conditions, strong economic growth, and low-interest rates. In Minnesota, housing prices can also be affected by location, amenities, and demand.
Minnesota Housing Market Forecast, 2023-2024
Zillow’s latest data shows that the Minnesota housing market has been experiencing notable trends. The average home value of Minnesota is $324,215 as of November 30th, 2023. This represents a significant rise of 1.6% in the last year.
Key Metrics
- Average home value: 324,215 dollars (up 1.6% last year).
- Days Pending: About 24 days
Listings and Inventory:
- For Sale Inventory (November 30th, 2023): 15,221
- New Listings (November 30th, 2023): 4,969
Median Sale Statistics (October 31st, 2023):
- Sale-to-List Ratio:
- Median Sale Price: $316,033
List Price Details (November 30th, 2023):
- Median list price: 337,167
- Percentage of sales over list price (October 31st, 2023): 40%
- Percentage of sales below list price (October 31st, 2023): 38.8%
Minnesota Areas where home prices are expected to drop in 2024
Zillow’s forecast for Minnesota 2024 shows that home prices could fall in certain regions. These projections, which are based on different MSAs (metropolitan statistical areas), provide insight into expected changes in the property value.
Grand Forks (ND): According to the forecast, home prices in Grand Forks are expected to decline by 0.5% by 2023. This will be followed by a drop of more than 1.8% on February 29th, 2024, and a significant decline of 5.6% on November 30th, 2024.
Marshall, MN: A slight decline of 0.2% by the end of 2023 is expected, followed by a further drop of 0.7% on February 29th, 2024, and an even more dramatic drop of 3.5% on November 30th, 2024.
Minneapolis, MN: The forecast indicates that home prices will decline moderately in Minneapolis. A projected 0.2% drop is expected by the end of 2023. This will be followed by a 0.9% fall by February 29th, 2024, and a 3.0% drop by November 30th, 2024.
New Ulm, MN: Prices in New Ulm are expected to remain stable by the end of 2023. However, a 0.9% decline is predicted by February 29th, 2024, and an additional 2.8% decrease by November 30th, 2024.
Rochester, MN: The forecast indicates that home prices will decrease slightly, with a projected decrease of 0.2% at the end of 2023. This is followed by a drop of 0.7% by February 29th, 2024, and 2.1% by November 30th, 2024.
Mankato, MN: Mankato’s prices are expected to remain stable by 2023. A slight decline of 0.3% is anticipated by February 29th, 2024, and an additional drop of 1.7% on November 30th, 2024.
Red Wing, MN: The forecast predicts that home prices will decrease slightly by the end of 2023. This is followed by a slight drop of 0.2% by February 29th, 2024, and then a modest drop of 1.4% on November 30th, 2024.
Faribault, MN: Faribault’s prices are expected to remain stable by 2023. A slight decline of 0.1% is projected for February 29th, 2024, and an additional drop of 1.3% on November 30th, 2024.
Winona, MN: Winona’s forecast shows a slight rise of 0.2% at the end of 2023. This will be followed by a decrease of 0.2% on February 29th, 2024, and a drop of 1.2% on November 30th, 2024.
Worthington, MN: The forecast suggests that home prices will decline moderately in Worthington. A projected 0.4% decline is expected by the end of 2023. This will be followed by an additional 0.4% decline by February 29th, 2024, and then a further 1% decline by November 30th, 2024.
St. Cloud, MN: St. Cloud’s prices are expected to remain stable by 2023. A slight decline of 0.2% is projected by February 29th, 2024, and a 0.9% decrease by November 30th, 2024.
Fergus Falls, MN: Prices in Fergus Falls are expected to remain stable by the end of 2023. A 0.5% decrease is projected by February 29th, 2024, and another 0.9% decline by November 30th, 2024.
Willmar, MN: Willmar’s prices are expected to remain stable, with no changes by the end of 2023. Then, they will decrease by 0.4% by February 29th, 2024, and by 0.9% by November 30th, 2024.
Alexandria, MN: The forecast suggests home prices will remain stable by the end of 2023. A minor decline of 0.1% is projected for February 29th, 2024, and an additional 0.9% drop by November 30th, 2024.
Bemidji, MN: Bemidji will see a slight rise of 0.1% at the end of 2023. This will be followed by a decrease of 0.4% by February 29th, 2024, and then a moderate decline of 0.6% on November 30th, 2024.
Hutchinson, MN: Hutchinson’s forecast shows home prices will remain stable by the end of 2023. A minor decline of 0.1% is projected for February 29th, 2024, and an additional 0.6% drop is expected by November 30th, 2024.
Owatonna, MN: Owatonna will see a slight rise of 0.1% at the end of 2023. This will be followed by a decrease of 0.2% by February 29th, 2024, and then a moderate decline of 0.5% on November 30th, 2024.
Duluth, MN: Duluth’s forecast shows that home prices will remain stable by the end of 2023. A 0.2% decline is projected by February 29th, 2024, and an additional 0.4% decrease by November 30th, 2024.
Albert Lea, MN: Albert Lea will see a slight decrease of 0.1% at the end of 2023. This will be followed by a decrease of 0.4% on February 29th, 2024, and then a stable scenario with an additional decline of 0.4% on November 30th, 2024.