Apr 30, 2023 - Real Estate

Twin Cities home prices hold steady while the coasts swing

Data: RE/MAX; Map: Alice Feng/Axios

Twin Cities home prices remain flat, as buyer and seller activity is down about 25% from last year, per the latest data from the Minneapolis Area Association of Realtors.

What's happening: A persistent shortage of homes for sale is keeping prices from dropping, Jerry Moscowitz, the Realtors association president, tells Axios.

  • Plus, interest rates remain elevated compared to recent years.

By the numbers: In March, the metro area's median sales price stood unchanged from a year ago at $355,000.

  • Pending sales were down 28% from last March, as sellers brought 24% fewer new listings online.
  • Also, homes sat on the market more than three weeks longer on average.
  • Sellers got 98.6% of their original asking price, compared to 102.7% a year ago.

The big picture: Two real estate markets are playing out across the country, with home prices falling in the West and rising in the East.

  • Generally, homebuyers are migrating eastward in search of a more affordable lifestyle, RE/MAX president and CEO Nick Bailey tells Axios.

Zoom out: Every market has been hot in recent years. Now, the market is rebalancing, with more volatility on the coasts.

  • “There’s no such thing as a national real estate market,” Bailey says.

What we’re watching: Inventory. The area's stock of homes for sale is still extremely short of a balanced market, when supply is meeting demand, Moscowitz says.

Moscowitz left us with some tips for navigating this spring market.

For sellers, it's more important than ever to make your house ready to show.

  • Buyers are no longer as willing to overlook deferred maintenance or other hang-ups.
  • That means your home should be in peak condition. "Or, if it's not in the right condition, have it priced accordingly," Moscowitz says.

For buyers, be ready to act quickly when you see something great. The days of homes getting multiple offers aren't entirely behind us.

  • "If you like a house, there's a good chance somebody else might like it, too," he says.

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