February 2025 Market Insights

February 2025 Market Insights

Key insights for January 2025 (compared to January 2024)*

• New listings: 4,333 | +8.3%
• Median sales price: $370,000 | +5%
• Closed sales: 2,394 | +7.7%
• Pending sales: 2,609 | -5.1%
• Days on market: 66 | +17.9%
• Inventory: 6,823 | -1.9%
• Months’ supply: 1.8 | -5.3%

Buyers hang back as more sellers enter the market

January’s mortgage rates hovered at around 7%, and affordability challenges persisted, causing buyers to put the brakes on making home offers after a four-month streak of gains. On the other hand, more sellers put their homes on the market in anticipation of a busy and competitive spring market driving new listings up 8.3%. The inventory of homes for sale remains stubbornly low with just under two months’ supply, causing buyers to compete for limited properties and further driving up prices. Sellers continue to get nearly 97% of their asking price.

Anecdotally, Edina Realty agents are reporting a diminishing sense of patience among buyers and sellers, who are tired of waiting for interest rates to significantly decline before taking action. That pent-up demand will likely lead to increased activity in the coming months, but the economy and unemployment will be key drivers in this area.

Real estate is hyper-local, and what is true for one area or price point may not be true for others. Some homes are attracting multiple offers, but overall, homes are taking longer to sell, averaging 66 days – up 17% from a year ago.

According to the National Association of REALTORS® (NAR), total housing inventory is up 16.2% from a year ago but remains down compared to pre-pandemic levels.

Working with a professional real estate agent is the best way to unlock opportunities and understand your options. Reach out to an Edina Realty to be matched with an agent.

Economic check-up

• Minneapolis-St. Paul area unemployment rate: 2.5% (as of December 2024)
• Average rates for 30-year conforming mortgage 6.85%**

*Data courtesy of the Minneapolis Area Realtors and NorthstarMLS for the 16-county Twin Cities metro area for January 2025.

**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.

Where you live

Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All % changes are year-over-year.

Alexandria Area

• New listings: 44 | +2%
• Avg. sales price: $366,756 | +33%
• Pending sales: 49 | +36%
• Days on market: 68 | +21%
• Inventory: 140 | -8%
• Months’ supply: 1.80 | -14%

Brainerd area

• New listings: 279 | +8%
• Avg. sales price: $341,203 | +14%
• Closed sales: 227 | +13%
• Days on market: 65 | +12%
• Inventory: 974 | +4%
• Months’ supply: 2.60 | +4%

Lake Superior area

• New listings: 215 | +41%
• Avg. sales price: $266,335 | -8%
• Pending sales: 166 | +4%
• Days on market: 46 | +24%
• Inventory: 644 | +19%
• Months’ supply: 2.40 | +14%

Southeast Minnesota area

• New listings: 360 | +20%
• Avg. sales price: $319,880 | +8%
• Closed sales: 264 | -12%
• Days on market: 59 | +4%
• Inventory: 832 | +16%
• Months’ supply: 2.00 | +18%

St. Cloud area

• New listings: 104 | +5%
• Avg. sales price: $302,509 | +7%
• Pending sales: 79 | -11%
• Days on market: 55 | +12%
• Inventory: 180 | -7%
• Months’ supply: 1.60 | -11%

Mankato area

• New listings: 94 | +11%
• Avg. sales price: $257,278 | +14%
• Pending sales: 95 | +7%
• Days on market: 90 | No change
• Inventory: 310 | +10%
• Months’ supply: 2.30 | +15%

Northwestern Wisconsin area

• New listings: 303 | +25%
• Avg. sales price: $304,305 | +4%
• Closed sales: 214 | +7%
• Days on market: 109 | +25%
• Inventory: 1,234 | +35%
• Months’ supply: 3.40 | +21%

West Central Minnesota area

• New listings: 180 | +1%
• Avg. sales price: $227,035 | +10%
• Pending sales: 214 | -5%
• Days on market: 60 | +30%
• Inventory: 771 | +14%
• Months’ supply: 3.80 | +15%

Bemidji area

• New listings: 33 | No change
• Median sales price: $185,000 | -5%
• Pending sales: 25 | -7%
• Days on market: 49 | -16%
• Inventory: 148 | +38%
• Months’ supply: 3.40 | +42%

Leech Lake and surrounding area

• New listings: 23 | -30%
• Median sales price: $362,450 | +29%
• Pending sales: 26 | +30%
• Days on market: 41 | +58%
• Inventory: 115 | +11%
• Months’ supply: 2.70 | +8%

Little Falls area

• New listings: 12 | +33%
• Median sales price: $285,000 | +60%
• Pending sales: 10 | -9%
• Days on market: 35 | +150%
• Inventory: 32 | -28%
• Months’ supply: 1.90 | +46%

Southwest Minnesota area

• New listings: 70 | +13%
• Median sales price: $152,500 | +11%
• Pending sales: 66 | +47%
• Days on market: 57 | -12%
• Inventory: 280 | +22%
• Months’ supply: 3.60 | +20%

Headwaters area

• New listings: 54 | -24%
• Median sales price: $202,114 | -3%
• Pending sales: 51 | -4%
• Days on market: 89 | No change
• Inventory: 300 | +33%
• Months’ supply: 3.40 | No change