Twin Cities Weekly Real Estate Market Update

Twin Cities Weekly Real Estate Market Report: Week Ending June 3rd, 2023

Welcome to the Twin Cities Weekly Real Estate Market Report for the week ending June 3rd, 2023. This report provides valuable insights into the current state of the real estate market in the Twin Cities region. The data is sourced from Minneapolis Area REALTORS®, a trusted research tool in the area.

Let's dive into the key metrics for the week ending June 3rd, 2023, with all comparisons made to the previous year:

1. New Listings: There were 1,464 new listings, representing a decrease of 20.7% compared to 2022.

2. Pending Sales: The number of pending sales decreased by 9.8% to 998.

3. Inventory of Homes for Sale: The inventory of homes for sale decreased by 6.7% to 7,000.

Now, let's explore the metrics for the month of April:

4. Median Sales Price: The median sales price remained flat at $369,900, indicating stability in the market.

5. Days on Market Until Sale: The average number of days on the market increased by 64.3% to 46 days. This suggests that homes took longer to sell compared to the same period last year.

6. Percent of Original List Price Received: The percentage of the original list price received decreased by 3.6% to 100.1%. This means that sellers received slightly lower offers compared to the initial list price.

7. Months Supply of Homes for Sale: The months supply of homes for sale increased by 33.3% to 1.6 months. This indicates a higher supply of homes available on the market, offering more options for buyers.

The Weekly Market Activity Report highlights that builder confidence in the Twin Cities region is on the rise. Increased new-home sales have been a contributing factor, as the limited supply of existing homes for sale has driven demand for new construction. The National Association of Home Builders (NAHB) reported a 5-point increase in builder sentiment in May, reaching a level of 50, which is the highest recorded since July 2022. Builders have been offering sales incentives to attract buyers, with an average price reduction of 6% reported among surveyed builders.

The Twin Cities region continues to exhibit a competitive real estate market, with a decrease in new listings and pending sales. However, the decreased inventory could potentially create a sense of urgency among buyers. The median sales price remained steady, indicating a balanced market where sellers and buyers are finding common ground.

The increase in days on market suggests that buyers may have more time to make decisions and explore available options. Additionally, the slight decrease in the percentage of the original list price received could indicate a slightly more negotiable market for buyers.

Overall, the Twin Cities real estate market remains active and dynamic. It's important for both buyers and sellers to stay informed about the latest trends and consult with real estate professionals to make well-informed decisions. As always, it's crucial to consider local market conditions and seek personalized advice when navigating the real estate landscape.

Please note that the data provided in this report is based on the week ending June 3rd, 2023, and all comparisons are made to the same period in the previous year. The real estate market can experience fluctuations, and it's advisable to consult the latest data for the most accurate and up-to-date information.

Stay tuned for future market updates to track the evolving trends in the Twin Cities real estate market.

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