The real estate market is always in flux, and understanding its dynamics is crucial for both buyers and sellers. According to recent data from the Saint Paul Area Association of REALTORS® (SPAAR) and Minneapolis Area REALTORS® (MAR), the market is currently experiencing a slight rise in home prices, a moderation in sales declines, and a certain sluggishness from sellers.
In June, the median sales price was up 0.5 percent from last year, standing at $382,000. This comes after a slight dip in prices in April and May. Despite a decline in sales, sellers are still receiving offers above their list price, reflecting the ongoing supply shortage in the face of rising mortgage rates. On average, sellers accepted offers at 101.3 percent of their asking price.
However, the market is not without its challenges. The number of new listings in June was down 16.5 percent from last year, and inventory levels slid 9.0 percent lower. Some sellers are choosing to wait instead of selling for a lower price, especially those who would also be buyers and are reluctant to trade away their low interest rates for higher ones.
Despite these challenges, homes are still selling relatively quickly, with half the sales going under contract in under 12 days. This is faster than the same period in 2018, 2019, and 2020. The market still favors sellers, but not to the same degree as in the last few years.
The market activity varies by area, price point, and property type. New home sales rose 24.3 percent, while existing home sales were down 12.8 percent. Single-family sales fell 13.7 percent, condo sales declined 3.2 percent, and townhome sales were up 0.8 percent.
In conclusion, the current real estate market presents unique opportunities and challenges for both buyers and sellers. Understanding these dynamics can help you make informed decisions and navigate the market effectively. As always, it’s advisable to work with a knowledgeable real estate professional who can provide guidance tailored to your specific needs and goals.
