Minnesota weekly real estate update

Minnesota real estate market

Minnesota weekly real estate update

Minnesota weekly real estate update


 This is the Minnesota real estate weekly update for December 17th, 2022. We have a Minnesota real estate market that continues to evolve.


We review real estate facts and future trends


The trends

We are now in a neutral selling market (neither a buyer nor seller’s market). This means you can see buyers coming in with offers contingent on them selling their home. In addition, you are seeing offers with home inspections and seller paid closing costs. In this market you should have a listing agent that has a comprehensive marketing plan. And you should strongly consider working with an experienced real estate agent to give you an edge in the buying process. Experience is priceless!

The facts


Here are the current facts for our Minnesota real estate market. Our current housing affordability Index for Minnesota real estate for November was 95, and this compares to 132 this same time last year. 90 is the lowest ever recorded. The higher the number means the greater home buying affordability in the Twin Cities. Our current inventory of homes for sale is 7,879. In comparison, we had 6,885 at this time in 2021. So, the inventory of homes for sale is up 14.4% from last year. A point of interest, in 2009 at the time of our first real estate correction in Minnesota in 40 years, we had over 36,000 homes for sale in the seven county Minneapolis/St. Paul metro area. Minnesota real estate pending sales for the last week, which have sold but not yet closed, was 637. That compares to 970 pending home sales last year. That is a decrease of 34.3% from the same week last year. An average real estate market would have a three-month supply of housing inventory and we have 2 months (November) I expect that to go up when December numbers come in). Last year it was a 1.5 months’ supply.

More facts


Minnesota seller’s benefit financially when real estate values rise. The median sales price (November) increased by 4.1% since this time last year. $339,900 is now the median sales price in the Twin Cities area. A market health indicator is the comparison of our sales price to original list price. For November, the average sale to list price was 97.2%. And that compares to 99.8 % in 2021. That number will adjust downward as we get December figures. For even more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. It features a comprehensive review of our Minnesota real estate market for those that like all the data!

Our current interest rates in the Twin Cities  

The low interest rates had been a catalyst for buying power for buyers the last two years, but rates have increased this year. These interest rate increases are designed to reduce the rise of inflation, but they will also impact what buyers can afford. Rates are in the mid to upper 5% for conventional and FHA/VA mortgages. Just reach out to me if you need contact information of a lender with those interest rates.

My opinion of the future of Minnesota real estate


I have experienced different real estate markets in over 30 years of real estate and supply and demand continue to control our market. With inflation forcing the Federal Reserve to raise interest rates we do not have rate increases in our rearview mirror yet. This is having a negative effect on the market and what buyers can afford. We are now in a neutral real estate market.

This is a suitable time to discuss your housing needs for 2023!

Your house and neighborhood in our MN real estate market


We find that price ranges and neighborhoods have its own specific trends and facts. In so if you are interested in knowing the specifics for your home…just call Jeff.

Jeff Anderson

The Anderson Team






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