12 May Minnesota real estate weekly update
Minnesota real estate weekly update
This is the Minnesota real estate weekly update for May 12th, 2023. Our Minnesota real estate market is predicted to appreciate 5.6% in 2023. Our spring market is here, and we are seeing a spring “bump” in prices. We are also seeing an increase in buyers in the Minnesota real estate market.
We review real estate facts and future trends.
We are now in our spring real estate season and as the result of low inventory we are in a seller’s market. This means we have lower than needed homes for sale for the number of buyers in the marketplace. We are seeing multiple offers and short market times for homes. You should strongly consider working with an experienced real estate agent to give you an edge in this market. Experience is priceless!
Here are current facts for our Minnesota real estate market. Our current housing affordability Index for Minnesota real estate for March was 128, and this compares to 155 this same time last year. The higher the number means the greater home buying affordability in the Twin Cities. Our current inventory of homes for sale is 6,259. In comparison, we had 6,097 at this time in 2022. So, the inventory of homes for sale is up 2.7% from last year and that percentage has been going down. A point of interest, in 2009 at the time of our first real estate correction in Minnesota in 40 years, we had over 36,000 homes for sale in the seven county Minneapolis/St. Paul metro area. Minnesota real estate pending sales for the last week, which have sold but not yet closed, was 1,045. That compares to 1,416 pending home sales last year. That is a decrease of 26.2% from the same week last year. An average real estate market would have a three-month supply of housing inventory and we have 1.5 months (March). Last year it was a 1.1 month’ supply. The average number of days on the market was 58 days in March compared to 35 days last year at the same time.
Minnesota sellers benefit financially when real estate values rise. The median sales price (March) was $355,000 in the Twin Cities area. A market health indicator is the comparison of our sales price to the original list price. For March, the average sale to list price was 98.6%. And that compares to 102.7% in 2022. For even more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. It features a comprehensive review of our Minnesota real estate market for those that like all the data!
Our current interest rates in the Twin Cities
Interest rates have now stabilized and look for rates to stay the same or go slightly down in 2023. Rates are high 5% for conventional and mid to low 5% for FHA/VA mortgages. Just reach out to me if you need contact information about a lender with those interest rates.
My opinion of the future of Minnesota real estate
Our interest rates look to stabilize with our bank stability concerns and inflation decreasing. With our low inventory of homes, we will have a seller’s market and that will continue at least until next winter holiday season.
This is a suitable time to discuss your housing needs for 2023!
The Anderson Team