The housing market in the Twin Cities has reached unprecedented levels, according to the latest report from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®. Despite higher mortgage rates and an increase in inventory, home prices have continued to climb.

Key highlights from the June 2024 report include:

• Home Prices: The median sales price rose by 1.8%, reaching a record $390,000.
• Market Activity: Signed purchase agreements dropped by 10.8%, while new listings decreased by 5.8%.
• Inventory: There was a notable 10.6% increase in available homes, bringing the total to 8,905. However, with just 2.4 months of supply, the market remains a seller’s market.
• Market Times: The average time homes stayed on the market increased by 9.7% to 34 days.

This year has seen a 10.6% rise in new listings and a 1.8% increase in pending sales compared to last year. However, higher mortgage rates of around 7% in May and June, combined with low inventory and rising prices, have decreased overall activity, particularly among first-time buyers.

“This is still a somewhat fragmented market where activity truly varies from price point to price point and area to area,” said Jamar Hardy, President of Minneapolis Area REALTORS®. “While we’re encouraged by more supply, the lack of affordability caused by higher mortgage rates and rising prices are still significant hurdles.”