24 Mar Minnesota real estate weekly update
Minnesota real estate weekly update
This is the Minnesota real estate weekly update for March 24th, 2023. We have a Minnesota real estate market that is predicted to appreciate 5.6% this year in 2023. Our spring market is here look for the spring “bump” in prices and an increase in buyers in the 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 back into a seller’s market. This means we have lower than needed homes for sale for the number of buyers in the marketplace. Look for multiple offers and short times for homes to be available. You should strongly consider working with an experienced real estate agent to give you an edge in this market whether it is buying or selling. Experience is priceless!
Here are current facts for our Minnesota real estate market. Our current housing affordability Index for Minnesota real estate for February was 131, and this compares to 168 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 5,649. In comparison, we had 5,119 at this time in 2022. So, the inventory of homes for sale is up 10.4% 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 804. That compares to 1,178 pending home sales last year. That is a decrease of 31.7% from the same week last year. An average real estate market would have a three-month supply of housing inventory and we have 1.3 months (February). Last year it was a .9 months’ supply. Days on the market was 61 days average in February compared to 44 days last year at the same time.
Minnesota seller’s benefit financially when real estate values rise. The median sales price (February) increased by .5% since this time last year with $341,850 the median sales price in the Twin Cities area. A market health indicator is the comparison of our sales price to original list price. For February, the average sale to list price was 97.2%. And that compares to 100.8% 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 in high 5% for conventional and 5.5% for FHA/VA mortgages. Just reach out to me if you need contact information of 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. With our low inventory of homes we will have a seller’s market and that will continue at least until next holiday season.
This is a suitable time to discuss your housing needs for 2023!
The Anderson Team
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