by Hannah Johnson
The housing market has been no stranger to change, and 2023 was no different. Buyers continue to ask when is the best time to buy. Sellers wonder if it’s still a good time to put their house for sale.
Let’s look at the numbers for the Twin Cities from 2023, according to the most recent data* available as of this writing:
- Number of new listings
- January: 74,772
- End of year: 58,723
- Percentage change: -13.4%
- Pending sales
- January: 65,138
- End of year: 43,847
- Percentage change: -17%
- Closed sales
- January: 65,754
- End of year: 43,982
- Percentage change: –20%
Analysis: The drop in new listings, pending sales, and closed sales show that there is still low inventory. That means there is still high demand for homes on the market, which makes it a great time to sell.
- Average days on market before an offer is accepted
- January: 27
- End of year: 40
- Percentage change: +33%
Analysis: Homes are tending to sit on the market for a longer period of time before accepting an offer. It’s critical to use the expertise of a Realtor to help price your home in the housing market’s sweet spot so that your home can sell quicker than the competition.
- Average days on market before an offer is accepted
- January: 27
- End of year: 40
- Percentage change: +33%
Analysis: Homes are tending to sit on the market for a longer period of time before accepting an offer. It’s critical to use the expertise of a Realtor to help price your home in the housing market’s sweet spot so that your home can sell quicker than the competition.
- Average percentage of original list price
- January: 101.9%
- End of year: 99.3%
- Percentage change: –1.7%
Analysis: Bidding wars may be waning some, but sellers are still receiving nearly full price on their listings. Again, it is critical to price your home based on the current market conditions – not overshooting the price based on what the housing market was a year ago.
- Average number of showings on a listing before it goes to Pending status
- January: 18
- End of year: 14
- Percentage change: -12.5%
Analysis: Showing activity has gone up and down throughout the year. It only takes ONE buyer to love your home and make an offer.
2024 Housing Market – What to Expect
So, what can we expect from the Twin Cities’ housing market in 2024? Based on the numbers, there is still demand for homes, and sellers are still getting offers and achieving listing price offers. For the homes that have been overpriced, some buyers have reaped the benefit of not having to enter bidding wars in order to gain a new home. The higher interest rates have also nudged out some buyer competition, though buyer activity is still strong. For the buyers out there who are afraid of the interest rates – don’t be. Remember that instead of needing to bid anywhere from $20,000 to $50,000 over the listing price, now you have a much better chance of a getting a home at the listing price. Guidance from a Realtor will help you navigate each home’s unique circumstance to help you achieve your goals.
Don’t wait to make homeownership (or home selling) your New Year’s Resolution. We have what it takes to lead you home in the new year. Contact us today!
*Data from InfoSparks on NorthstarMLS
