Minnesota real estate weekly update
Minnesota real estate weekly update
This is the Minnesota real estate weekly update for July 21st, 2023. Our Minnesota real estate market is predicted to appreciate 5.6% in 2023. Our spring market is here, and we are seeing a “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.
The trends
We are now in our summer 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 in many areas for the number of buyers in the marketplace. You should strongly consider working with an experienced real estate agent to give you an edge in this market. Experience is priceless!
The facts
Here are current facts for our Minnesota real estate market. Our current housing affordability Index for Minnesota real estate for June was 108, and this compares to 120 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 7,547. In comparison, we had 8,612 at this time in 2022. So, the inventory of homes for sale is 12.4% less than last year. 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 834. That compares to 949 pending home sales last year. That is a decrease of 12.1% from the same week last year.
An average real estate market would have a three-month supply of housing inventory and we have 2 months (June). Last year it was a 1.7 month’ supply. The average number of days on the market was 31 days in June compared to 21 days last year at the same time.
More facts
Minnesota sellers benefit financially when real estate values rise. The median sales price (June) was $382,000 in the Twin Cities area. A market health indicator is the comparison of our sales price to the original list price. For May, the average sale to list price was 101.3%. And that compares to 103.3% 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 mid 6% for conventional and low 6% 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 inflation decreasing. Many buyers are jumping into this market now with current interest rates because when rates go up so do the numbers of buyers in the market and sales prices increase. These buyers will just do a no cost refi when rates go down and beat the market!
This is a suitable time to discuss your housing needs for 2023!