As we head into the Fall of 2024 the Twin Cities MN real estate market is experiencing some significant shifts. If you're thinking about buying or selling a home in the 7 County Metro Area, understanding these market trends is crucial. In this post, we’ll break down the latest numbers, what they mean for you, and how the Federal Reserve’s recent rate cut impacts your next steps.

Twin Cities Real Estate Market Trends for Fall 2024
We’re deep into the fall market, and as expected, inventory is dropping. This week, active listings fell by 3.3%, or 243 fewer homes, compared to last week. However, the overall inventory decline since October 1st has been more moderate than in previous years, with only 398 fewer active listings compared to the usual drop of nearly 2,900 homes.

For buyers, this means there are still opportunities to find homes, even though inventory is tightening. And for sellers, the reduced competition makes it a great time to list your home, especially with homes spending an average of 38 days on the market.

Federal Reserve’s Rate Cut and Mortgage Impact
This week, the Federal Reserve lowered interest rates by 25 basis points. While this is generally positive news for the economy, mortgage rates have yet to decline and, in fact, have slightly increased. However, this cut could boost consumer confidence and keep the market active. Sellers may benefit from energized buyers, while buyers should keep an eye on borrowing costs and take advantage of any opportunities that arise.

Months Supply of Inventory (MSI)
All seven metro counties, including Hennepin, Ramsey, and Carver, are still in a seller’s market, with MSI under 5 months. Carver County has the highest MSI at 3.19, and Anoka and Ramsey Counties have the lowest at 2.24 and 2.26, respectively. What does this mean for you? Sellers have the advantage, but buyers who act quickly can still find valuable opportunities.

Year-to-Date Sales Holding Strong
Despite national forecasts predicting a 2.6% increase in home sales for 2024, the Twin Cities market is showing a more modest rise. Year-to-date closed sales are up 0.8% from last year, indicating the local market is holding steady. For buyers, this is a sign of continued demand, while sellers can be confident in the resilience of our market.

Key Insights for Buyers and Sellers

• Buyers: Homes are averaging 38 days on market, giving you some breathing room. But with inventory on the decline, don’t wait too long if you find a property you love.

• Sellers: Take advantage of the limited inventory. Well-priced homes are still selling quickly, and with less competition, your listing could shine.

Whether you’re planning to buy or sell in the Twin Cities Metro Area, understanding these market trends will give you an edge. With inventory decreasing and economic factors at play, strategic timing is more important than ever. If you’re ready to discuss your options or want a personalized market analysis, our team at First Choice Realty Solutions is here to help.

Ready to take the next step? Contact us today for expert real estate guidance tailored to your needs. And don't forget to check out our latest market update video for more insights!