Ted Bergstrom

MN Real Estate Team



Mortgage Rates Exceed 7 Percent for the First Time this Year

April 18, 2024
The 30-year fixed-rate mortgage surpassed 7 percent for the first time this year, jumping from 6.88 percent to 7.10 percent this week. As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.

Information provided by Freddie Mac.

March Housing Market Report

Spring market continues budding; buyers seeing more options

  • Signed purchase agreements rose 7.8%; new listings up 4.0%
  • The median sales price increased 2.8% to $366,000
  • Market times fell 6.9% to 54 days; inventory up 8.4% to 6,879

(Apr. 15, 2024) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, both buyer and seller activity rose in March. Inventory levels and prices were also higher.

Sellers, Buyers and Housing Supply
With warmer temperatures comes heightened home buyer and seller activity. Metro-wide, we’ve now seen five consecutive year-over-year increases in new listings and four consecutive increases in pending sales. During the first quarter (YTD), seller activity rose 17.9% while pending sales were up 9.4%. That’s allowed inventory levels to also rise—most recently up 8.4% to 6,879 active listings. While buyers can expect to see more listings in their searches, most areas and sub-markets still favor sellers. There is a good amount of pent-up activity from buyers and sellers that’s been accumulating from when rates jumped. The backlog is starting to be released as more consider making a move. In some ways, residents of the Twin Cities are adjusting to the higher rate environment, but low supply and rising prices combined with higher rates have held back too many from homeownership—particularly first-time buyers without the equity from their first home. Move-up buyers and those looking at pricier segments are less rate-sensitive and so activity is rising more quickly higher up on the price spectrum.

Prices, Market Times and Negotiations
Perhaps surprisingly, REALTORS® still report multiple offer situations in some markets and price points. If rates were to ease further toward 6.0%, that will continue. Listings spent 6.9% fewer days on market compared to last March. And sellers accepted offers at 98.8% of their asking price, up 0.2% from last year. “It’s clear that people are ready and eager to get deals done,” said Jamar Hardy, President of Minneapolis Area REALTORS®. “But even a few months of increases in available listings doesn’t mean the housing shortage is behind us. We’re still having to be persistent, strategic and creative when it comes to getting people into homes.”

Supply levels are too low for prices to fall but rates are too high for prices to rise much. The median home price in March was up 2.8% to $366,000 which amounts to $208 per finished square foot. During the month, sellers accepted offers on their listings after an average of 54 days (median of 24) compared to 58 days last March. Sellers are still in a relatively strong position, but some are having to make concessions by way of a price reduction, seller paid closing costs and other incentives.

“We’re in a unique place. The market remains tight even as we see it loosening a bit with more inventory and more buyers coming out to shop,” said Amy Peterson, President of the Saint Paul Area Association of REALTORS®. “A market like this is never monolithic. Every price point, segment and area are different—sometimes very different. That’s why it’s important to partner with an experienced real estate professional.”

Location & Property Type
Market activity always varies by area, price point and property type. Existing home sales rose faster than new home sales. Single family sales rose while condo and townhome sales declined. Sales over $500,000 rose at over five times the rate of sales under $500,000. Cities such as Robbinsdale, Columbia Heights and Corcoran saw among the largest sales gains while Forest Lake, Victoria and Delano all had notably weaker demand. For cities with at least five sales, the highest priced areas were Medina, Lake Elmo and Orono while the most affordable areas were Red Wing, Mora, Columbia Heights and Faribault.

March 2024 Housing Takeaways (compared to a year ago)

  • Sellers listed 5,261 properties on the market, a 4.0% increase from last March
  • Buyers signed 4,028 purchase agreements, up 7.8% (3,238 closed sales, down 0.9%)
  • Inventory levels rose 8.4% to 6,879 units
  • Month’s Supply of Inventory rose 20.0% to 1.8 months (4-6 months is balanced)
  • The Median Sales Price was up 2.8% to $366,000
  • Days on Market was down 6.9% to 54 days, on average (median of 24 days, down 11.1%)
  • Changes in Pending Sales activity varied by market segment and price point
    • Single family sales rose 12.8%; condo sales were down 15.6%; townhouse sales decreased 1.2%
    • Traditional sales were up 8.0%; foreclosure sales fell 11.9% to 37; short sales rose 11.1% to 10
    • Previously owned sales increased 8.9%; new construction sales were up 2.3%
    • Sales under $500,000 rose 3.9%; sales over $500,000 increased 20.3%

    From The Skinny Blog.

Weekly Market Report

For Week Ending April 6, 2024

The share of homebuyers who paid cash for their home reached a 10-year high recently, according to the National Association of REALTORS®, with cash buyers accounting for 32% of all home purchases in January. Real estate investors and vacation-home buyers made up the majority of cash buyers during the past 6 months; among those consumers who paid cash for a home purchase last year, 26% were repeat buyers, while just 6% were first-time buyers.


  • New Listings increased 32.2% to 1,383
  • Pending Sales decreased 0.7% to 892
  • Inventory increased 13.4% to 7,048


  • Median Sales Price increased 4.6% to $358,000
  • Days on Market decreased 3.3% to 59
  • Percent of Original List Price Received increased 0.3% to 97.5%
  • Months Supply of Homes For Sale increased 35.7% to 1.9

All comparisons are to 2023

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Mortgage Rates Move Toward Seven Percent as Markets Digest Incoming Data

April 11, 2024
Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path. While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different economic picture. Since inflation decelerated from 9% to 3% between June 2022 and June 2023, the annual growth rate of inflation has remained effectively flat, ranging from 3.1% to 3.7% and averaging 3.3%. The March estimate of 3.5% annual growth is in the middle of that range. However, the market’s reaction was dramatically different, as illustrated by a significant drop in the Dow Jones Industrial Average post-announcement.

It’s clear that while the trend in inflation data has been close to flat for nearly a year, the narrative is much less clear and resembles the unrealized expectations of a recession from a year ago.

Information provided by Freddie Mac.

Weekly Market Report

For Week Ending March 30, 2024

U.S. residential housing starts jumped 10.7% from the previous month to a seasonally adjusted annual rate of 1.521 million units, led by a surge in single-family starts, which increased 11.6% to 1.129 million units from the previous month, according to the U.S. Census Bureau. Meanwhile, overall housing completions rose 19.7% to a seasonally adjusted annual rate of 1.729 million units, the highest level since January 2007.


  • New Listings decreased 10.4% to 1,014
  • Pending Sales decreased 1.1% to 933
  • Inventory increased 12.0% to 7,029


  • Median Sales Price increased 4.6% to $358,000
  • Days on Market decreased 3.3% to 59
  • Percent of Original List Price Received increased 0.3% to 97.5%
  • Months Supply of Homes For Sale increased 28.6% to 1.8

All comparisons are to 2023

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Mortgage Rates Continue to Show Little Movement

April 4, 2024
Mortgage rates showed little movement again this week, hovering around 6.8 percent. Since the start of 2024, the 30-year fixed-rate mortgage has not reached seven percent but has not dropped below 6.6 percent either. While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term. On the plus side, inventory is improving somewhat, which should help temper home price growth.

Information provided by Freddie Mac.