A look at the latest information on the fall real estate market trends.
As we delve into mid-October of 2023, it’s time to reflect on the past year in the real estate market and assess how it’s affecting inventory. We’re particularly interested in the number of days homes spend on the market and the shifts in supply at various price points within the Twin Cities Metro region. Let’s take a closer look at what’s been happening.
Price Point Segmentation
We kick off our analysis by segmenting the market into three price points: entry-level (up to $300,000), mid-range ($300,000 to $500,000), and the upper range ($500,000 to $800,000). While there is a higher bracket, we’ll be focusing on these three segments for this discussion.
Days on Market
In the entry-level segment, the number of days a home spends on the market has increased slightly from 14 to 16 days over the past year. This is expected as it’s a hot-moving market due to the affordable price range, attracting numerous buyers.
In the mid-range segment, homes have seen a 50% increase in time on the market, moving from ten to 15 days. The upper range has also experienced a notable increase, with days on market doubling from 10 to 20 days. Though this shift might not seem significant, it represents a substantial change in inventory dynamics within the broader market.
“The real estate market in the Twin Cities Metro region remains resilient.”
We’ve also observed shifts in the inventory of homes for sale. The entry-level segment, which typically moves quickly due to high demand, has witnessed a slight reduction in available homes. On the other hand, the mid-range segment has seen only a marginal decrease in inventory.
In contrast, the upper range segment’s inventory has notably risen, going from approximately 1,300 homes a year ago to just over 1,700 homes now. While these homes are still selling, they are spending more time on the market.
Median Home Prices
One of the most common questions is about the direction of home prices. Surprisingly, over the past year, the median home price in the Twin Cities region has remained remarkably stable at $400,000. This aligns with the modest fluctuations in the mid-range inventory, as this is where the median price predominantly lies.
What’s particularly fascinating is the stability observed in the market. Looking at the historical chart for the past five years, prices have followed a growth trajectory, but in May 2022, we began to see a stabilization trend. Despite the anticipation that rising interest rates would lead to falling prices, it’s the lack of inventory across the broader market that is sustaining this price stability.
If you have any questions or need further insights, feel free to reach out by phone or email. The real estate market continues to be an interesting and dynamic field, and we’re here to keep you updated.