28 Oct Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for October 28th, 2023. We have lots to talk about. Read on to find out why this is a buying opportunity.
We review the real estate facts and future trends.
The trends of our real estate market
Our fall real estate season is here, and we continue to experience low inventory. The Minnesota real estate market is heading into a more neutral status, but this depends on the area and price range. Some of those areas and price ranges are experiencing price reductions of listings. It is important in this market to work with an experienced real estate agent to give you an edge. You can imagine the advantage you have when your agent has 30 years of experience and the other agent in the transaction is new to real estate. Real estate experience is priceless!
A good reading is our current housing affordability Index and for Minnesota real estate for September it was 105. That compares to 119 at the same time last year. The higher the number equals greater home buying affordability in the Minneapolis/St. Paul area. The current inventory of homes for the seven-county area that are for sale is 8,813. That compares to 9,560 at this time in 2022. The Minnesota real estate inventory of homes for sale is down 7.8 % from last year. An interesting fact, in 2009 when we had our first real estate correction in 40 years in Minnesota, we then had over 36,000 homes for sale. The Minnesota real estate pending sales for the last week (sold but not yet closed) was 800. And that compares to 854 pending home sales in 2022. We have 6.3% less pending home sales than at the same time last year.
We find in an average real estate market that we would have a three-month supply of housing inventory. We now have 2.4 months (September figures). Last year in August we had a 2-month supply. So, the trend is moving up and that is a healthy sign for a more normal Minnesota real estate market. The average number of days on the market for the seven-county Twin Cities area was 34 days in August and that compares to 32 days last year.
More Minnesota real estate facts
The median sales price for September was $371,000 in the Twin Cities area and that is 2.4% more than last year at this time. The average sale to list price was 99.3% for September and that compares to 98.9% in 2022. To see more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. You will find comprehensive and up-to-date facts about our Minnesota real estate market!
Our current interest rates in the Twin Cities
We saw that interest rates did not go up at the last Federal Reserve meeting. Interest rates are in the high 7% for conventional and mid 7% for FHA and VA mortgages. Let me know if you need to speak to a lender who has those low rates.
What is the future of Minnesota real estate?
Many smart buyers are jumping into this market now with our current interest rates. Why? Because when rates go up the numbers of buyers in the market go down and we can secure a house at a better price and less or no multiple offers. Then these buyers will just do a no cost refi when rates go down! When rates go down next year as it is predicted, then more buyers will come into the market. We will then see unreasonable buying pressures like last year.
With our strong job figures and the growth of our economy look for an interest rate increase of .25% at the next Federal Reserve meeting.
This is a suitable time to discuss your housing needs for the end of 2023 and 2024!
The Anderson Team