Your Market Update August 2023

7 months ago

Minneapolis Area Housing Market: Bright Spots in August 2023

The sun seems to shine a little brighter in the Minneapolis real estate realm, even as the year progresses and seasons change. The latest figures for August 2023, provided by the Minneapolis Area REALTORS®, not only give a detailed overview of the current market but also highlight several reasons to be optimistic about the housing scenario in the region. Let's delve into these promising numbers.

Celebrating the Market Highlights:

The Resilience of Closed Sales: While there has been a slight 11.6% decline in closed sales, it's essential to see the larger picture. The national trend indicates that higher mortgage rates and housing inventory dynamics are factors at play across the board. Yet, with the mortgage rates reaching their peak, there's potential for them to stabilize or even drop, which could reignite buyer interest.
New Listings and Pending Sales Holding Strong: New listings in the Twin Cities region experienced only a minor decrease of 2.8%, amounting to a promising 6,077 new opportunities for potential homebuyers. As for pending sales, at 4,468, it's a testament to the enduring interest of buyers in the region.
Inventory Ready for a Rebound: A dip of 11.8% in inventory levels is a short-term challenge, but this only means there's room for growth and expansion in the upcoming months.
Bullish Price Trends: Despite certain market fluxes, the Median Sales Price showcased an impressive growth of 2.7%, settling at a robust $380,000. This is great news for homeowners, indicating that their investments continue to appreciate.
Extended Days on Market: An increase of 18.5% in the average days before sale (32 days) suggests that buyers are taking their time, evaluating their options, and ensuring they make the right choice. It's a win-win as both buyers and sellers can arrive at deals that resonate with their aspirations.
Supply Reflects Opportunity: The 15.8% rise in the Months Supply of Homes for Sale, which now stands at 2.2 months, is a clear signal of burgeoning opportunities. Buyers have a wider range to select from, and the momentum seems geared toward a balanced market.

A Brighter National Perspective:

The National Association of REALTORS® (NAR) paints a broader picture, emphasizing the potential embedded in the current scenario. Even as there's a short-term dip in sales, the robust price growth at the national level suggests the enduring value of real estate as an investment. The national median existing-home price has ascended to a commendable $406,700, marking a rise of 1.9% from last year.

Buyers:

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Sellers:

If you’re a seller, now might be the right time for you to put your home on the market. Wondering What Your Home Is Worth? I would love to help. Let's connect and set up a time to talk about your goals and plans for selling!

Check Out My Sellers Guide To Learn More About What I Do For My Clients To Get Them Top Dollar!

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