Chain of Lakes is a recreation gem in Minneapolis consisting of five lakes: Brownie Lake, Cedar Lake, Lake Calhoun, Lake Harriet, and Lake of the Isles. These lakes and the associated parkland create nearly 1,100 acres of water surface and over 1,500 acres of urban parks. There’s also a 13-mile trail system you can walk or bike connecting to the five lakes and various channels, providing more water recreation opportunities.
The real estate associated with this gorgeous area is the Minneapolis-Saint Paul metropolitan area, otherwise known as the Twin Cities. The Twin Cities region includes the state capital, St. Paul, and the neighboring city of Minneapolis. Seven counties make up this area and house more than three million people. You’ll find everything from downtown high-rises to riverfront properties. The local suburbs surrounding the lakes offer single-family homes and luxurious estates. This rich, diverse area offers dramatic skylines, professional sports, award-winning theaters, exceptional restaurants, and a trendy craft beer scene. Residents revel in the natural beauty, local boutiques, high-end malls, annual events, festivals, and fine dining opportunities.
If you’re considering a move to the area, you’ll want to know about the Chain of Lakes real estate market and what’s predicted. Below is information on the Twin Cities real estate market that reflects post-pandemic circumstances. We’ll break down the overall region and the individual areas of Minneapolis and Saint Paul.
Minneapolis housing market trends 2023
The median sales price in Minneapolis as of March 2023 was $299,000, a nearly 8% decrease from last year. New listings and closed sales have also dropped since 2022, while days on the market have increased by 48%. Based on these current trends, the Minneapolis market may see the same cooling-off period as the greater region. With a limited supply of homes, it would appear to be a seller’s market. However, the decrease in pricing favors buyers. Buyers would have more options and less competition if the inventory increased. Still, despite some changes over the last year, the market remains steady and balanced.
Saint Paul housing market trends 2023
The Saint Paul housing market remains steadier than Minneapolis. The current median sales price as of March 2023 was $260,000. This is only a slight decrease over last year but continues to impact buyers and sellers. The number of listings and closed sales have decreased throughout the year, while days on the market have increased significantly. With a similar market to Minneapolis and the greater region, it’s easy to predict that this market will continue cooling off and becoming more balanced.
Twin Cities housing market prices, trends, and forecast 2023
The Twin Cities housing market continues to remain strong overall. The median sales price as of March 2023 was $355,000, which is on point with the last twelve months. The current inventory shortage, which has decreased by nearly 24% since last year, is one likely reason for the stagnancy in pricing. With things remaining relatively steady over the previous few quarters, it’s difficult to forecast this region's future accurately. Given the decrease in new home listings and the increase in days on the market, the market is likely heading into a cooling-off period. This could also potentially mean a more balanced market for buyers and sellers.
The Twin Cities metropolitan area is predicted to remain balanced throughout the coming years, with a slight drop in home prices that will impact buyers and sellers. Buyers may feel some relief from the higher prices and competition. This turnaround will help buyers feel less pressure to make quick decisions and give them more negotiating power. For sellers, there may not be such a more positive twist. If you plan to sell your home, you must adjust expectations accordingly. In addition to pricing homes more competitively and possibly waiting longer for your home to sell, you’ll want to be more flexible with conditions.
A forecast is simply an estimate of where the market may go. Real estate markets are often unpredictable and can change quickly. Additional factors like the economy and interest rates can also impact the market. Buyers and sellers should work with a trusted real estate agent to stay updated on the latest trends.
Real estate market: Should you invest?
The real estate market in the Twin Cities is still strong, despite some decreases in prices and inventory. Whether investing in your own home or considering a rental property, it’s a good time to invest. With home prices declining and interest rates and today’s current rates sitting around 7%, with no real sign of dropping, there’s no time like the present. Additionally, sellers don’t like their homes sitting on the market for too long, so you have a greater chance of negotiating a deal. You might also consider investing in real estate to rent, which is an excellent option in this region.
The market for rental property in the Minneapolis area is strong, and the occupancy rate is high. This area has many renters, especially with the University of Minnesota close. Minneapolis alone has seen tremendous population growth in the past decade. This continued growth only perpetuates the need for housing in the city. The strong job market supports a steady demand for renters as well. Being home to several Fortune 500 companies, including Target and General Mills, there’s a demand for housing. If you’re considering investing in rental properties, the Twin Cities region is an excellent place to begin.
Work with a trusted Realtor to find your next home
As you can see, the Chain of Lakes region real estate market is balanced. Everything remains relatively balanced, and home prices aren’t forecasted to jump significantly in the coming year. Contact The Muske Team if you’re interested in Chain of Lakes homes for sale or want more information. With over 50 years of combined experience, The Muske Team is ready to help you.