Minnesota weekly real estate update

06 Jan Minnesota weekly real estate update

Minnesota weekly real estate update

 

 This is the Minnesota real estate weekly update for January 6th, 2023. We have a Minnesota real estate market that is predicted to appreciate 5.6% in 2023. It looks like 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. we strongly suggest 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 6,881. In comparison, we had 5,790 at this time in 2021. So, the inventory of homes for sale is up 18.8% 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 449. That compares to 567 pending home sales last year. That is a decrease of 20.8% 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. Look for our normal bump in appreciation the spring and summer. Our spring real estate season will be closer to the historical average for demand. That means great homes that are priced correctly will receive multiple offers, but the number of offers will be much less. I look for interest 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