24 Mar Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for March 24th, 2024. We have lots to talk about.
We review the real estate facts and future trends
The trends of our real estate market
Our spring real estate season is here, and we continue to experience low inventory. This spring our Minnesota real estate market brings us more buyers into play and creates a seller’s market because of the limited inventory.
It is important in this market to work with an experienced real estate agent. You can imagine the advantage you have when your agent has 30 years of experience. Real estate experience is priceless!
The facts
A good reading is our current housing affordability Index and for Minnesota real estate for February was 123. That compares to 133 at the same time last year. The higher the number equals greater home buying affordability in the Minneapolis/St. Paul area. The current inventory of homes for the seven-county area that are for sale is 6,793. That compares to 6.072 at this time in 2023. The Minnesota real estate inventory of homes for sale is up 11.9% from last year. An interesting fact, in 2009 when we had our first real estate correction in 40 years in Minnesota, we then had over 36,000 homes for sale. The Minnesota real estate pending sales for the last week (sold but not yet closed) was 896. And that compares to 805 pending home sales in 2023. We are up 11.8% for the last three months compared to the year before.
We find in an average real estate market that we would have a three-month supply of housing inventory. We now have 1.8 months (February figures). Last year in February we had a 1.4 month supply. The average number of days on the market for the seven-county Twin Cities area was 59 days in February and that compares to 61 days last year.
More Minnesota real estate facts
The median sales price for February was $358,000 in the Twin Cities area and that is 4.6% more than last year at this time. The average sale to list price was 97.5% for February and that compares to 97.2% in 2023. To see more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. You will find comprehensive and up-to-date facts about our MN real estate market!
Our current interest rates in the Twin Cities
Inflation looks to be under control and that is great news since then the Federal Reserve says it will do three quarter point interest rate reductions this year. But with the strength of the economy they will not be lowering rates until maybe June. Interest rates are 6.25% for conventional and high 5’s for FHA and VA mortgages. Let me know if you need to speak to a lender who has those low rates.
What is the future of Minnesota real estate?
Our market is heating up so it’s best to buy before we see the intense competition of years past. Expect to see a 2-4% jump in prices this spring.
This is a suitable time to discuss your MN real estate housing needs for 2024!
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