19 Aug MN Real Estate Update

MN Real Estate Update

This is our MN real estate update for August 19th, 2022.  MN real estate market update is now experiencing an adjustment. The rates and housing inventory have increased and the number of buyers in the marketplace has decreased.

We review MN real estate update facts and future trends

The trends

We are now in a more neutral selling market (neither a buyer or seller’s market). So, what does that mean? That you should strongly consider working with an experienced real estate agent to give you an edge in buying or selling process that understands the market. Experience is priceless and for a buyer it costs you nothing but can save you much.

The facts

MN real estate update of our current facts. Our current housing affordability Index for Minnesota real estate updated for June was 101, and this compares to 141 this same time last year. The number of 100 is the lowest ever recorded. The higher the number means the greater home buying affordability in the Twin Cities. So, this trend is negative. Our current inventory of homes for sale is 8,818 and climbing. In comparison, we had 8,183 in 2021. So, the inventory of homes for sale is up 7.8% from this time last year. This is the new trend with our much higher interest rates. 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/Saint Paul metro area. The Minnesota real estate pending sales for the last week, which have sold but not yet closed, was 1,181. That compares to 1,453 pending home sales last year. That is a decrease of 23.1 from the same week last year (wow). So, fifty-four of the last fifty-nine weeks that number has decreased compared to the previous year. An average real estate market would have a three-month supply of housing inventory and we have 1.8 months (July). Expect August figures to increase.

More facts

Minnesota seller’s benefit financially when real estate values rise. The median sales price (July) increased by 7.1% since this time last year. $375,000 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 July, the average sale to list price was 101.5%. And that compares to 103.6 % in 2021. That number will adjust downward as we get August figures. For more MN real estate market update information visit my website at mnrealestate area appreciation for up to date state my Minneapolis are realtors 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 have been a real catalyst for buying power for buyers the last two years, but rates have doubled this year. These interest rate increases are to reduce the rate of inflation, but they will also impact what buyers can afford. Rates are up from last week. Rates for lender paid closing costs are 5.746% for VA, 5.572% for FHA and 6.386% for conventional. Rates for borrower paid are 4.25% for VA and FHA is 4.25% and 4.875% Conventional. Just reach out to me if you need contact information of a lender with those interest rates.

MN real estate and my opinion of the future

I have experienced many real estate markets in over 30 years of real estate, but hard to compare to the last couple of years. With inflation forcing the Federal Reserve to raise interest rates they will increase more this year This is having a chilling affect on the market and what buyers can afford. Many buyers have and will decide to rent instead of buying. I predict this late summer and fall that inventory will continue to increase and we will move into a somewhat of a buyer’s market in Minnesota this winter.

This is a suitable time to discuss your housing needs for 2022!

Your house and neighborhood in our MN real estate update

We find that price ranges and neighborhoods have its own specific trends and facts. In so if you are interested in knowing the specifics for your home…just call Jeff.

Jeff Anderson

The Anderson Team

www.mnrealestate.com

RE/MAX RESULTS

612-386-8600