Minnesota weekly real estate update

30 Dec Minnesota weekly real estate update

Minnesota weekly real estate update

 

This is the Minnesota real estate weekly update for December 30th, 2022. We have a Minnesota real estate market that continues to evolve.

 

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 November was 95, and this compares to 142 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 7,258. In comparison, we had 6,196 at this time in 2021. So, the inventory of homes for sale is up 17.1% 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 633. That compares to 824 pending home sales last year. That is a decrease of 23.2% from the same week last year. An average real estate market would have a three-month supply of housing inventory and we have 1.8 months (November) I expect that to go up when December numbers come in). Last year it was a 1.2 months’ supply.

More facts

 

Minnesota seller’s benefit financially when real estate values rise. The median sales price (November) increased by 4.1% since this time last year. $354,000 is 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 November, the average sale to list price was 97.2%. And that compares to 99.8 % in 2021. That number will adjust downward as we get December figures. 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  

 

The low interest rates had been a catalyst for buying power for buyers the last two years, but rates have increased this year. These interest rate increases are designed to reduce the rise of inflation, but they will also impact what buyers can afford. Rates are in the mid to upper 5% for conventional and 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

 

We will continue to have about 6% appreciation in 2023. Our spring real estate season will be closer to the historical average for demand and not like the craziness of last year. That means great homes that are priced correctly will receive multiple offers but the number of offers or prices over asking of last year. I look for rates to go down next year and housing demand will then increase proportionally.

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