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Twin Cities Real Estate Market Update (2025): Navigating Stability and Gentle Growth Ahead

Hey Twin Cities homebuyers and sellers! In this market update, we'll break down the latest trends, numbers, and forecasts – giving you clarity and confidence in your property decisions. A big thanks to Minneapolis Area REALTORS® for the comprehensive data! If you are a data geek like me, check out their reports here.

Current Market Snapshot: Stability with Subtle Shifts

As of November 2024, our 13-county Twin Cities region exhibits a stable market with gentle positive trends. Let's dive into the numbers:

  1. Median Sales Price: $380,000 – up 2.7% year-to-date. This moderate increase indicates continued demand and gradual appreciation.
  2. New Listings: 61,825 – increased by 8.2% year-to-date. More homes hitting the market means increased options for buyers and subtle growing competition for sellers.
  3. Pending Sales: 42,710 – rose slightly by 1.8% year-to-date. Consistent demand drives pending sales upward, reflecting buyers' ongoing interest.
  4. Closed Sales: 41,748 – nearly flat with 0.7% growth year-to-date. Steady closed sales confirm market stability and moderate growth.
  5. Inventory: 8,662 active listings – increased by 2.5% year-to-date. Growing inventory offers buyers more choices, but our market remains balanced between supply and demand.
  6. Months Supply: Remained steady at 2.3 months. This consistent level indicates neither buyers nor sellers overwhelmingly dominate the market.
  7. Days on Market: Decreased by 10% to 44 days. Faster sales cycles mean buyers must act quickly, while sellers benefit from swift transactions.

What These Numbers Mean for Twin Cities Homebuyers

You'll encounter gradually increasing prices (2.7% median sales price growth), so factor this into your budget.

Enjoy more property options thanks to the 8.2% increase in new listings – but act fast, as homes sell quickly!

Consistent demand drives pending sales upward, indicating you're not alone in your home search.

With growing inventory, you'll have more choices – but our balanced market means sellers still hold some sway.

What These Numbers Mean for Twin Cities Home Sellers

Your property value has likely increased (2.7% median sales price growth), making now a good time to list.

Face subtle growing competition from the 8.2% increase in new listings – ensure your property stands out!

Consistent demand supports pending sales, giving you confidence in attracting buyers.

With inventory growing but market balance maintained, price your property competitively to attract swift offers.

2025 Forecast: Navigating Moderate Growth and Economic Factors

Looking ahead to 2025, we consider economic indicators like interest rates, inflation, and employment trends. Our forecast predicts:

  1. Moderate price appreciation (2-4% growth), influenced by gentle interest rate increases.
  2. Stable demand, slightly decreased by higher borrowing costs – but still driven by low unemployment.
  3. Increasing inventory offers more options for buyers, while maintaining market balance.
  4. Faster sales cycles for affordable homes (<$350k) due to relative value.
  5. Shift to suburban growth, driven by affordability and appeal.

Conclusion

The Twin Cities real estate market continues on a path of stability and gentle growth. As we move into 2025, buyers and sellers alike must navigate moderate price appreciation, stable demand, and increasing inventory. By understanding these trends and forecasts, you'll make informed decisions in your property journey. Stay ahead of the curve with my expert insights – subscribe to Land of 10k Listings for regular Twin Cities real estate market updates and analysis.


For personalized guidance on buying or selling your home or to get a free home valuation – reach out to me to discuss your 2025 real estate goals.


Vincent Henry
REALTOR
612-402-0119
Vincent@brixtwincities.com

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