Southeast MN’s 2024 Housing Market: Hope Amid Challenges

A Glimmer of Hope for Southeast Minnesota’s Housing Market in 2024

2023 was a challenging year for the housing market in Southeast Minnesota, with a dip in both sellers and buyers. According to a recent report by the Southeast Minnesota Realtors (SEMR), closed sales were down 17.6% in 2023 compared to the previous year. However, 2024 offers a glimmer of hope as listings have increased slightly, and interest rates have declined.

Factors Contributing to the Challenging Housing Market in 2023

There were several factors that contributed to the challenging housing market in 2023. The home buying season traditionally begins after the Super Bowl, but 2023 was atypical with sales plummeting to their lowest level since 2011. Median sales prices in the Twin Cities metro area were up 1.4%, with buyers needing to make about $100,000 a year to comfortably afford the median sales price of $368,000.

Furthermore, a shortage of inventory made it difficult for buyers to find homes, and many potential sellers were hesitant to list their homes due to uncertainty in the market. This led to a dip in both buyers and sellers, resulting in a challenging year for the Southeast Minnesota housing market.

Opportunities and Predictions for the 2024 Housing Market

Despite the challenges faced in 2023, there are several opportunities and positive predictions for the 2024 housing market in Southeast Minnesota. With a slight increase in listings and declining interest rates, experts see opportunities for move-up buyers who want new construction and increased activity in the northwest suburbs.

It is predicted that there will be more people willing to make a move in the coming months, with a busy spring market expected. This could lead to an increase in sales and a more balanced market for both buyers and sellers.

Advice for Buyers and Sellers in the 2024 Housing Market

For those looking to buy or sell a home in 2024, it’s essential to be prepared for the challenges and opportunities in the market. Here are some tips for both buyers and sellers:

For Buyers:

• Get pre-approved for a mortgage before beginning your home search. This will give you a better idea of your budget and show sellers that you are a serious buyer.
• Be prepared to act quickly when you find a home you love. With a busy spring market expected, homes may sell quickly, and you’ll want to be ready to make an offer.
• Work with a knowledgeable real estate agent who can help you navigate the market and find the right home for your needs.

For Sellers:

• Price your home competitively to attract buyers. Work with your real estate agent to determine the right price based on comparable homes in your area.
• Ensure your home is in good condition and make any necessary repairs or updates before listing. This will help your home stand out in the market and attract buyers.
• Be flexible with showings and open houses to accommodate potential buyers. With more people looking to make a move in the coming months, you’ll want to make it as easy as possible for them to view your home.

Conclusion

While 2023 was a challenging year for the housing market in Southeast Minnesota, there are signs of hope for 2024. With increased listings and declining interest rates, the market is expected to become more balanced for both buyers and sellers. By being prepared and working with a knowledgeable real estate agent, you can successfully navigate the market and achieve your homeownership goals.

For more information on the Southeast Minnesota housing market and how to navigate it, visit my website and stay up-to-date with the latest news and trends.