Keeping tabs on the housing market can be SUPER frustrating. Especially if you don’t know who is trying to blow smoke up your butt and who is trying to scare you to sell more headlines. Well… I have good news for you. This blog will cover the Twin Cities housing market using REAL, LOCAL data. No smoke. No fear. Just info.
This blog will cover:
- Sales prices
- Inventory trends
- Buyer demand
- Where we are headed for the spring market (Heads up… we are already starting to see multiple offer situations again.)
If we haven’t met before, my name is Bailey Beckman. I’m a local Twin Cities REALTOR that drives my business by data and real facts, not market assumptions. Save yourself time and energy moving forward and subscribe to my YouTube Channel to be the first to know about market changes in the Twin Cities.
Median Sales Prices
Kicking off the new year, we saw the median home sales price hover at $342,000 in January for the Twin Cities region.
- Up 2.7% from January of 2022, $332,950
- Down from December 2022, $348,320
January still is a marker for our winter market and is in the off-season in the Twin Cities, so this price was expected.
Inventory Trends
There were a total 5,634 homes for sale, which is up 15.5% compared to January of last year. However, there were only 3,306 new homes listed in the Twin Cities 16 county region, down 10% from last year.
This relationship between the number of total homes for sale and the number of new listings added really highlights what was going on with buyer demand last month.
This relationship between the number of total homes for sale and the number of new listings added really highlights what was going on with buyer demand last month.
Closed Sales
The number of closed sales significantly dropped year over year by 31.7%. Buyers chose to stand on the sidelines with higher interest rates and chose not to make any moves. And sellers chose not to list their homes for fears of not selling. You can also see this in the year over year increase in days on market and the percentage of original list price.
Days on market
The median days on market bounced up to 43 days, almost double of January 2022 (when interest rates were averaging 3.59% of course). Now I know this number seems scary, but if you take a look at the trends for days on market in the month of January historically, we are pretty much on par with years prior to the pandemic when the market boomed.
Percentage of List Price
We also saw the percentage of offers accepted vs the original list price drop down to 97.3%. This means sellers were accepting offers at less than their asking price. Now this was a normal thing prior to 2020 and we used to see this type of dip each off season.
Where buyer demand is headed...
The combination of sellers fearing their homes wouldn’t sell paired with reduced buyer demand created a market where buyers had more negotiation power than they have had since 2019.
That being said, you missed the boat if you were waiting for this type of market.
Now here in February we are starting to see multiple offer situations again and the number of days on market is starting to reduce, meaning the current active buyers are having to make faster decisions. Even though interest rates are still hanging out between 6-6.5% for a 30-year mortgage, the spring market is going to kick up and begin looking more competitive.
there's your january 2023 market recap!
Check out my 2023 forecast video for what I expect to happen with inventory, which is going to directly impact the supply and demand balance in the real estate market headed into this next year.
