Key insights from Sept. 2023 (compared to Sept. 2022)*

• New listings: 5,663 | -6.4%
• Median sales price: $370,305 | +2.2%
• Closed sales: 4,126 | -17.1%
• Pending sales: 3,686 | -7.3%
• Days on market: 34 | +6.3%
• Inventory: 8,704 | -9.4%
• Months' supply: 2.3 | +15%

The highlights

• Mortgage rates are slowing down sellers (who are also move-up buyers), causing an inventory shortage
• Buyer and seller activity remains below this time last year
• Sellers continue to receive strong offers-99.3% of list price in an average of 34 days

As has been the trend this year, housing inventory remains low. Though the Fed left rates unchanged for September, the continued high interest rates caused home sellers and buyers to pause. Homeowners continued to put off moves whenever possible, which in turn caused a low inventory of existing homes for sale. Compounding the issue is a lack of downpayment funds among first-time homebuyers and younger generations, who have had to put off buying. New construction offers one hopeful solution to the inventory shortage with sales of new homes trending up.

As Boomers continue to age, many will be looking to downsize, which could help alleviate the housing shortage and allow Gen X and older Millennials opportunities to move-up so younger Millennials and Gen Z can finally buy in.

Overall, sellers continued to receive strong offers. The inventory shortage created stiff competition for buyers resulting in sellers attracting 99.3% of their list price in an average of 34 days.

As always, market dynamics differ according to home type, price point and location. A few items of note:

• New construction sales: +44.8%
• Existing homes sales: -12%
• Homes under $500,000: -10.1%
• Homes over $500,000: +2.8%
• Cities with the highest sales gains: St. Anthony, Orono, Richfield and Golden Valley