07 Jan Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for January 7th, 2024. 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 winter 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 on listings. This now is the best time of year to buy a home since we do not have the buying pressures and crazy bidding wars of the spring. But look that to change in one month’s time as our spring market starts right after the super bowl.
It is important in this market to work with an experienced real estate agent. You can imagine the advantage you have when your agent has 30 years of experience. Real estate experience is priceless!
The facts
A good reading is our current housing affordability Index and for Minnesota real estate for November was 108. That compares to 117 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 7,167. That compares to 7,488 at this time in 2022. The Minnesota real estate inventory of homes for sale is down 4.3% 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 571. And that compares to 473 pending home sales in 2023.
We find in an average real estate market that we would have a three-month supply of housing inventory. We now have 2.2 months (November figures). Last year in November we had a 1.9 month supply. The average number of days on the market for the seven-county Twin Cities area was 40 days in November and that compares to 40 days last year.
More Minnesota real estate facts
The median sales price for November was $362,600 in the Twin Cities area and that is 2.2% more than last year at this time. The average sale to list price was 97.4% for November and that compares to 97.2% 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
Inflation is coming down and that is great news since now the Federal Reserve has said they are planning to do three quarter point interest rate reductions next year! Interest rates have come down to 5.99% for conventional and mid 5%’s 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 down and spring comes the numbers of buyers in the market will go up dramatically and we are once again be looking at lots of multiple offers. Also, buyers who buy now will just do a no cost refi when rates go down! So, the numbers of buyers in the market are a function of the time of year and interest rates. We will then see unreasonable buying pressures this spring just like last year.
This is a suitable time to discuss your housing needs for 2024!
Jeff Anderson
The Anderson Team
www.mnrealestate.com
RE/MAX RESULTS
612-386-8600
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