08 Sep Real estate in the Twin Cities has hit a 10 year high!
Real estate in the Twin Cities has hit a 10 year high! The combination of mortgage rates at a record low and the low inventory of homes for sale have attributed to the rapid appreciation we are seeing in this real estate market. What this means to buyers is in many cases we have multiple offers but on the other side of the coin they are getting incredibly low mortgage rates and wonderful affordability because of the low monthly payment. With the premium that apartments are getting more buyers see they can own for cheaper than renting a similar home and that is before the tax saving that both the federal and state governments provide for home ownership and interest write off. Compared to 2006 there were almost 30,000 homes for sale and today there are around 13,000. The worry for some consumers is that in selling their home and then not being able to turn around and purchase something after they sell since the market is competitive. They fear of the the possibility of selling their home and not being able to find something they want due to low inventory and competition from buyers and multiple offer situations. I’m able to work with my sellers in this regard with a number of strategies that may include selling it subject to the sellers finding a home of their choice. Sellers in the 350,000 and below have an easier time than those above that price range that can be frustrated that all the press states what a great market it is but they are receiving limited showing and no offers…the market is very location sensitive in a wide range of prices and it is up to your real estate agent to provide you with the facts of your area for the demand in your homes price point.
In conclusion while this market has made a wonderful recovery if you listen to all the media…it has in some areas and in some price ranges and is soft and yet still a buyers’ market in others. Rely on the experience and data from an experienced real estate agent to help you through this process and trust they are your advocate in negotiating the complexities of this challenging Twin Cities real estate market.