In September 2024, the downtown Minneapolis real estate market showed a mix of stable trends and notable shifts compared to the same time in 2023. Here's a summary of the key changes:
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Listings and Inventory: The number of new listings remained stable at 75, similar to September 2023. However, overall inventory increased slightly, with a 5.6% rise in homes for sale, reaching 246 available properties.
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Sales Activity: Buyer demand appears to have softened, as pending sales dropped by nearly 20%, or 10 fewer transactions than last year. The decline in closed sales was even more pronounced, with only 34 homes closing, representing a significant drop of over 40% compared to 2023.
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Pricing Trends: Despite fewer sales, the median sales price for downtown properties increased by about 6%, reaching $357,500. This indicates that the market remains competitive for desirable homes. However, the price per square foot decreased slightly, falling to $302/foot from $314 last year, suggesting that buyers are paying less on a per-square-foot basis, even as overall prices rise.
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Market Timing: The median days on market remained consistent at 55 days, reflecting stability in how long homes take to sell despite fluctuations in other areas.
In summary, while inventory is up and pricing is resilient, the drop in both pending and closed sales suggests a more cautious buyer pool or fewer opportunities to close deals. Nonetheless, the rise in median sales price shows that demand for downtown properties remains strong, even amid shifting market dynamics.
Looking ahead to October 2024
We have noticed a positive shift in buyer interest as we enter a lessened interest rate environment. This should help balance the recent decline in sales activity, making it a favorable time for both sellers and buyers. We're already seeing signs of renewed momentum in the market.
For sellers, the key to winning in this market is to hit the ground running with superb staging and strategic pricing right from the start. Well-marketed properties that are presented beautifully will stand out and attract serious buyers. With the right approach, you're well-positioned to succeed in this improving market climate.
REACH OUT TO DISCUSS HOW THESE NUMBERS AFFECT YOUR MARKET TIMING AT [email protected]
Data retrieved from the NorthStarMLS via map of Downtown Minneapolis Neighborhoods including: Loring Park, Elliot Park, Downtown West, Central Minneapolis, North Loop, East Town, Mill District, Nicollet Island, St. Anthony West, and Marcy-Holmes.
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