2024 MN housing sales, listings recap provided by Realtors associations | FOX 9 Minneapolis-St. Paul

2024 MN housing sales, listings recap provided by Realtors associations

A yearly report produced by a trio of Minnesota-based real estate groups is offering a recap of the 2024 housing market, showing that despite several challenges, sales increased while listings declined.

Minnesota’s real estate market

What we know:

According to the 2024 Annual Report on the Minnesota Housing Market produced as a joint effort between Minnesota Realtors (MNR), Minneapolis Area Realtors (MAR) and the St. Paul Area Association of Realtors (SPAAR), "buyers overcame the triple punch of higher rates, rising prices and tight inventory for a slight gain on the year."

The report says that home sales rose 1.1% statewide, and 1.8% in the Twin Cities metro, in comparison to 2023.

However, despite 30-year fixed mortgage rates falling from a 23-year high of 7.79% in October 2023, to the current range of mid-6%, "sellers still felt a lock-in effect" – creating a reluctance to give up favorable mortgage rates, and leading to a shortage of listings.

As mortgage rates dropped to 6.08% in September 2024, the Federal Reserve initiated a series of interest rate cuts, and potential buyers propelled sales through October and November to end the year strong, the report says.

In total, new listings were up 6.4% statewide, and 8.2% in the Twin Cities metro. The average sale price for a home in Minnesota rose to $404,512 in 2024 – an increase of 4.1%, compared to $388,602 in 2023.

A house typically spent 42 days on the market before being sold, an increase of 10.5% compared to 2023.

Digging deeper into home sales, listings in Minnesota

By the numbers:

Despite an increase in sales, there were fewer homes available to pick from.

According to the report, pending sales increased 1% compared to 2023, with 66,923 homes sold in 2024. However, the total of homes available for sale decreased 0.3% compared to 2023, with 11,476 active listings.

Detailed further, listed properties with two bedrooms or fewer saw the largest decline in sales at 3.4%, while homes with four bedrooms or more saw an increase of 4%.

The price of a home sale also had a factor year-over-year, according to the report. The number of homes sold for $100,000 or below fell 14.8% to 1,725 homes. Meanwhile, homes priced at $500,000 or more rose 11.7% - a total of 14,191 homes.

According to statistics provided in the report, the largest increase in closed sales from 2023 came from Kittson County at 41.7% year-over-year. The county also had the largest jump in median sales prices at an increase of 108.1%. Meanwhile, the largest decline during the same timeframe was found in Norman County, with a decrease of 29.2%. 

The largest increase in the change of available homes for sale was found in Mahnomen County – with a jump of 200% compared to 2023. The largest decline in homes for sale was found in Kanabec County, with a decrease of 29%.

The most new listings compared to 2023 were found in Mahnomen County, with an increase of 64.3% in available homes. Rock County saw the second-largest increase at 52.6%.

Real estate in 2025

What's next:

According to the report, economists are projecting existing home sales and home prices will increase at a moderate rate heading into 2025, despite mortgage rates expected to remain in the 6-7% range.

Meanwhile, the inventory of new and existing homes will continue to improve in the new year, with increases in both single-family and multifamily construction expected, according to the National Association of Home Builders.

The Source: Information provided by the 2+024 Annual Report on the Minnesota Housing Market

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