03 Feb Minnesota weekly real estate update
Minnesota weekly real estate update
This is the Minnesota real estate weekly update for February 3rd, 2023. We have a Minnesota real estate market that is predicted to appreciate 5.6% this year in 2023. This winter is a great buying opportunity before our spring “bump” in prices and an increase in buyers in the market.
We review real estate facts and future trends.
The trends
We are now in a neutral selling market (neither a buyer nor seller’s market). This means you can see buyers coming in with offers contingent on them selling their home. In addition, you are seeing offers with home inspections and seller concessions like seller paid closing costs. 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!
The facts
Here are current facts for our Minnesota real estate market. Our current housing affordability Index for Minnesota real estate for December was 102, and this compares to 145 this same time last year. 90 is the lowest ever recorded. The higher the number means the greater home buying affordability in the Twin Cities. Our current inventory of homes for sale is 6,083. In comparison, we had 5,027 at this time in 2022. So, the inventory of homes for sale is up 21% from 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 643. That compares to 759 pending home sales last year. That is a decrease of 15.3% from the same week last year. An average real estate market would have a three-month supply of housing inventory and we have 1.4 months (December). Last year it was a .9 months’ supply.
More facts
Minnesota seller’s benefit financially when real estate values rise. The median sales price (December) increased by 5.1% since this time last year. $348,320is now 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 December, the average sale to list price was 96.3%. And that compares to 100.9% in 2021. 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 the mid to upper 5% for conventional and mid 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
Federal Reserve only raises rate .25 of a basis point at this week’s meeting. It looks like that will be the last interest rate increase they want to do this year and the economy starting to slow down and inflation receding.
This is a suitable time to discuss your housing needs for 2023!
Jeff Anderson
The Anderson Team
www.mnrealestate.com
RE/MAX RESULTS
612-386-8600
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