06 Jan Better Days Ahead for Home Buyers in The Twin Cities!
Better Days Ahead for Home Buyers
That’s right, there are better days ahead for home buyers in the Twin Cities. Late in autumn 2018, there were roughly 3,992 properties listed for sale in the Twin Cities. That is a 12.6 percent increase than the year prior.
Due to the slight increase in listings, it’s suggested that better days are ahead for agents and their clients looking to buy. Further proving that while it may seem slow moving these are all great signs for home buyers in the Twin Cities.
Simultaneously, there was a 5.2% decrease in signed purchase agreements. The result of this was 10,181 homes left on the market. This was an annual gain of 2.3%. Making this the first in approximately four years.
According to Kath Hammerseng, the president of the Minneapolis Area Association of Realtors, “The inventory gains we’ve been waiting for have finally arrive”. In addition, Kath also stated, “Buyers — particularly those who feel sidelined — can take comfort in that shift.”
Supportive Data (follow link for interactive graphs)
Throughout 2018 sales have been muted by the rising prices and shortage of homes being listed. Most of the recovery coming from the homes on the lower end of the pricing scale. Which is ultimately outdoing the new listings. This leaves the baby boomers, first-time home buyers, and others with very few options. Increasing the prospect of bidding wars and rapidly increasing prices.
The median price of all home sales, in November 2018, was $265,150. This was an 8.2% jump over 2017. Also marking a new record for the month of November. Typically, sellers were seeing 97.3% of their original asking price. This was a significant break from earlier in 2018 when sellers were seeing 99% of their asking price.
While some segments of the real estate market remain extremely competitive, this did not ease the minds of the few who concerned about another housing bubble. Even with the welcomed news of the November shift in the market, not all believe that better days are ahead.
At this rate there was just barely a sufficient amount of houses on the market. This was just enough to last 2.1 months. While this is an increase or the prior the market isn’t considered balanced until there’s a 5-month supply. Averaging a rate of 52 days on the market before being sold. This is an increase of 7.1% from 2017.
Favorable Time for Home Buyers
The increasing amount of homes listed during which time buyers generally aren’t house hunting is taking place at a favorable time, for home buyers. Subsequent to numerous weeks of swelling, mortgage rates, this week, lessened slightly.
President- elect of Minneapolis Area Association of Realtors, Todd Urbanski, stated “Rates are actually down from where they were in October and November, that’s encouraging news for buyers.”