As we wrap up the year, the Twin Cities real estate market continues to evolve. Whether you're planning to buy or sell a home, understanding the latest trends can help you make confident decisions. Let’s break down the December 2024 market update for the Twin Cities 7-county metro area and highlight what it means for buyers and sellers alike.

Active Listings – What’s Trending?
Inventory reached a high of 8,106 active units on September 21st but has since dropped by 1,593 units, leaving us with 6,513 active listings. This is 1,704 more than the 4,809 units we started the year with.

• For Sellers: Fewer active listings mean less competition, giving your property more visibility. However, pricing your home right remains critical to attract serious buyers.

• For Buyers: While inventory is tighter, motivated sellers are more likely to negotiate, especially as we approach year-end.

Inventory typically dips during the holidays, and we expect to start 2025 with higher inventory than at the beginning of 2024. That’s a promising sign for buyers.

Year-to-Date Closings – What It Means for You
By December 2024, we’ve closed 35,345 properties, a significant drop from the 51,660 closings recorded by the same time in 2021—a 31.6% decrease.

• For Buyers: Fewer closings indicate a slower market, giving you time to evaluate your options without the intense pressure of bidding wars.

• For Sellers: While there are fewer buyers in the market, those still shopping are serious and often pre-approved, reducing the chances of deal fall-throughs.

Contract Ratios – Market Balance
Contract ratios this fall range between 43% and 50%, aligning with 2022 and 2023. This suggests a balanced market for both buyers and sellers.

• For Buyers: You’ll encounter more stable conditions compared to the frenzied market of 2021, with opportunities to negotiate favorable terms.

• For Sellers: While it may take slightly longer to sell your home, well-priced and well-presented properties are still moving quickly.

Days on Market – Timing Your Move
The average Days on Market (DOM) for pending sales is now 45 days, while closed sales are at 38 days.

• For Sellers: Homes may take longer to sell compared to peak market periods, but this gives you time to prepare your home to attract top offers.

• For Buyers: Longer market times mean less competition and more room to negotiate, especially with sellers eager to close before the holidays.

Takeaways for December 2024
The Twin Cities real estate market is stabilizing, presenting opportunities for both buyers and sellers:

• Buyers can explore their options with less pressure.

• Sellers benefit from motivated buyers and lower inventory competition.

If you’re planning to buy or sell, now’s the time to prepare for the new year. Reach out to our team today for expert guidance tailored to your goals.