Minnesota home sales up from 2023 to 2024

ST. PAUL — Home sales statewide in Minnesota rose from 2023 to 2024, according to newly released statistics from three of the state’s largest real estate associations.

According to the numbers from Minnesota Realtors, Minneapolis Area Realtors and St. Paul Area Association of Realtors, statewide home sales were up just over 1% last year over 2023. Twin Cities metro area home sales were up 1.8%.

“In short, rising home prices, rising mortgage rates and low inventory played a major role throughout 2024,” said Frank D’Angelo, president of Minneapolis Area Realtors. “In fact, between 2021 and 2023, the mortgage rates rose from 2.7% all the way up to 8%.”

D’Angelo said sales of metro-area homes that cost $1 million or more jumped more than 12% year-over-year, reaching their highest level ever. He said those purchasing luxury homes appear to be less concerned about the relatively high interest rates than buyers in other categories.

“With all of the pent-up demand for homes, sales could quickly increase if interest rates continue to fall,” D’Angelo said.

Days on the market rose 10.5% over 2023, which means it remains a buyers’ market.

“Sellers did have to be more patient, but not overly so, as they were still in a relatively favorable position,” said St. Paul Area Association of Realtors President Patti Jo Fitzpatrick. “Buyers who wrote strong, clean offers right out of the gate tended to be successful.”

The median price of home sales statewide rose nearly 4% to $345,000. Metro-area home prices rose more than 3% to a median of $380,000.

“Sellers looking to make a move should make sure that their home is priced appropriately. Buyers should be preapproved and prepared to present their best offer,” Fitzpatrick said.

She and her colleagues are expecting a stronger housing market in 2025.

“Assuming rates remain around 6.5% for most of the year, we would expect sales to rise 8 to 10% as the pent-up demand is released, and we’d expect prices to rise between 4 and 6%,” she said.

But even stable or reduced interest rates will not immediately fix the now-14-year housing inventory shortage in Minnesota.

This story was originally published on MPRNews.org