March saw increase in new listings as housing market remains hot in Minnesota

Metro real estate market 2024

The Minnesota housing market continues to be competitive but March showed positive movement. New listings were up 7.3% and pending sales increased 11%, according to Minnesota Realtors. Closed sales also increased by half a percent.

“Our numbers for January and February were incredible numbers. We hadn’t seen them for quite some time so we had a really good optimistic view,” said Geri Theis, president of Minnesota Realtors. “March numbers are still increasing so I’m still feeling optimistic.”

Despite the increase in listings, Theis said the state only has about a two-month supply of homes available.

“A healthy, strong and balanced market, we really want between four and six months,” she said.

The low inventory created challenges for Shi Almont and Eric Donner when they started looking for their first home last year.

“We made offers, we didn’t win, we threw in the towel pretty quickly,” Almont said.

They submitted an offer that was $40,000 above the asking price for their dream home, which was the final home they pursued. Almont said the house sold to another buyer for $50,000 above the list price.

The competition eventually forced them out of the market.

“You’re panicking just to get an offer in, any offer before the deadline,” Donner said.

Almont added, “Having to make that decision to make that commitment and then go through the competition of it all, it’s just a lot to handle all at once.”

Persistent low inventory means home buyers are paying 14-18% over the list price to get a home in the Twin Cities metro, according to Shane Montoya, owner of The Odd Couple Team with Keller Williams.

“The market is very fast and busy,” he said. “It’s really affecting the first-time home buyer, especially those who have worked really hard to save money.”

Higher interest rates are part of what’s keeping inventory low. Montoya said owners who locked in lower rates a few years ago are hesitant to sell.

Almont and Donner restarted their search last week and discovered sellers are still choosing from multiple offers. Working with The Odd Couple Team, they’ve now purchased a home before it hit the market.

“We feel very, very lucky,” Almont said.