As we step into the new year, the Stillwater real estate market offers a unique mix of opportunities and challenges, reflecting both stability and subtle shifts that are worth noting for buyers, sellers, and investors.
Current Market Snapshot
The median list price for single-family homes in Stillwater, MN, stands at $633,750, with inventory levels decreasing to 40 homes—a sign of tightening supply. The Market Action Index (MAI) hovers at 43, signaling a slight seller's advantage. While this isn’t a full-blown seller’s market, it's clear that demand continues to outpace supply.
Median days on the market (DOM) are 74, indicating moderate movement in the market, while higher-end properties are seeing extended timelines due to their unique positioning.
$633,750
Median List Price
40 homes
Inventory
43
Market Action Index
74
Days on Market
Key Trends to Watch
1. Flat Pricing with Subtle Variations
While overall prices remain steady, the top quartile is experiencing some positive momentum. Conversely, the lower quartiles are showing slight pricing weaknesses. This divergence signals opportunities for buyers and sellers depending on their target market segment.
2. Price Per Square Foot Rising
At $255 per square foot, smaller homes have been pulling average values up despite stagnant overall prices. This is a result of limited inventory rather than widespread price increases.
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3. Inventory Challenges
Declining inventory levels point to growing scarcity, particularly in certain price ranges. However, it's important to monitor the MAI and DOM trends closely to determine whether buyer interest aligns with available properties.
4. Market Segments Performing Differently
Properties priced over $1 million dominate the higher quartile, averaging 192 DOM, while more affordable homes are moving much faster. These dynamics highlight the importance of tailored strategies for buyers and sellers in different segments.
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What This Means for Buyers and Sellers
For Sellers:
Leverage the slight seller’s advantage to price your home strategically. With demand strong across the board, particularly for move-in-ready properties, there’s potential for upward pricing pressure in the coming months.
For Buyers:
Don’t be discouraged by the seller's advantage. Inventory might be tight, but opportunities still exist, especially in lower quartiles where pricing adjustments could work in your favor.
For Investors:
Keep a close eye on the high-end market for signs of shifting trends. Extended DOM for luxury properties may present unique opportunities for negotiation.
Looking Ahead
As 2025 unfolds, the Stillwater market is poised for continued evolution. Whether you're buying, selling, or investing, staying informed and working with an experienced real estate professional is key to navigating these conditions.
For a detailed report or personalized market insights, reach out anytime. I’m here to guide you through every step of your real estate journey.
