The inventory shortage in the Minneapolis real estate market has continued into 2023. According to data from the Minneapolis Area Realtors (MAR), as of February 2023, there were only 1,800 active listings, which is down 25% compared to February 2022. The shortage
of homes for sale has led to a surge in demand, resulting in rising home prices. The median sale price for a home in the Minneapolis-St. Paul metro area was $405,000 in February 2023, up 12.4% from the same period in 2022.
Strong demand for single-family homes and townhouses
The demand for single-family homes and townhouses remains strong in Minneapolis. According to MAR data, in February 2023, sales of single-family homes increased by 7.5% compared to the same period in 2022, while sales of townhouses and condos increased by 4.2%.
This suggests that the trend of buyers prioritizing space and privacy over the convenience and lower maintenance of a townhouse or condo is still prevalent.
Suburban housing markets continue to be popular
The suburban housing markets surrounding Minneapolis are still popular among homebuyers. Many buyers are seeking larger homes and yards in the suburbs, leading to a surge in demand and higher prices. For example, in the city of Maple Grove, the median home
price was $550,000 in February 2023, up 33% from the same period in 2022.
The Minneapolis real estate market continues to be characterized by high demand and low inventory, resulting in rising home prices in some areas. The trend of buyers prioritizing space and privacy over the convenience and lower maintenance of a townhouse or
condo is still prevalent, with strong demand for single-family homes and townhouses. Suburban housing markets surrounding Minneapolis continue to be popular among homebuyers. Working with a knowledgeable real estate agent can help buyers and sellers navigate
the current market conditions and achieve their real estate goals.