Minnesota housing market: Everything you need to know
Known as the Land of 10,000 Lakes, Minnesota offers a picturesque haven for nature enthusiasts and boasts a remarkable 75.1 percent homeownership rate. If you’re considering entering the Minnesota housing market, it’s essential to understand the current real estate landscape. In this blog post, we’ll delve into the trends, statistics, and valuable insights for both buyers and sellers in Minnesota.
Minnesota Housing Market Overview
In Minnesota, recent data indicates a slowdown in new listings and closed sales, primarily due to high mortgage rates. However, despite this decline in activity, housing prices continue to rise across the state. The local markets within Minnesota vary significantly, with the Twin Cities region leading the way with a median home sale price of $380,000. Homes here are selling slightly above list price and spend an average of 23 days on the market. In contrast, the South Central region has a median price of $253,500, with homes selling just below list price. The Upper Minnesota Valley sees a median price of $136,500, with homes taking an average of 51 days to sell.
Minnesota Housing Trends and Stats
As of July 2023, the median home sale price in Minnesota stands at $342,995, a 0.9 percent increase from the previous year. While this is slightly below the national median of $407,100, it still reflects a thriving real estate market. Closed sales have decreased by 19 percent year-over-year, and new listings are down by 14.6 percent. Sellers are typically receiving just over full asking price, with a sales-to-list price ratio of 100.1 percent. Homes now spend approximately 28 days on the market, up from 25 days in July 2022. Typical closing costs in Minnesota are 1.4 percent of the home’s sale price, around $4,802 for a median-priced property.
Buy or Sell: Considerations for Minnesota Market Participants
If You’re a Home Seller
Selling a home in Minnesota offers several advantages at present. Prices are on the rise, and properties are often selling above list price, making it a seller’s market. With a 2.3-month supply of housing inventory available in July (well below a balanced market’s 5-to-6-month supply), demand outweighs supply. However, it’s crucial to price your home appropriately. Consulting with a local real estate agent for accurate market insights and comparable property values is essential.
If You’re a Homebuyer
While the market favors sellers, there is some positive news for buyers. Inventory has increased by 15 percent since the previous year, and homes spend a bit more time on the market, allowing for a less rushed decision-making process. Being preapproved for a mortgage before house-hunting is crucial in a seller-friendly environment. This not only helps you understand your budget but also positions you as a serious buyer in the eyes of sellers. Additionally, familiarize yourself with any cost of living differences between your current city and your potential new one.
Minnesota Housing Market Predictions
Despite concerns about a potential housing market crash, experts believe it’s unlikely in Minnesota. While activity has slowed, prices remain stable, with low inventory and high demand. This suggests a robust and resilient market.
Conclusion
Navigating the Minnesota housing market requires careful consideration of the current trends and market dynamics. Whether you’re a buyer or a seller, partnering with a knowledgeable local real estate agent can make the process smoother and more successful. With careful planning and the right insights, you can make the most of Minnesota’s vibrant real estate landscape.