20 May Our new construction market in the Twin Cities
Our New construction market in the Twin Cities
Our current new construction market in the Twin Cities is based on supply and demand. The supply is almost half what it was a year ago and new construction is no exception.
We currently have approximately 5,000 homes for sale in the 7 county Twin Cities area. In Minnesota we have over 900 homes for sale to be built. We also have 1,300 under contract and in the process of construction or scheduled to be built. The average sales price is $534,000 and the median sales price is $460,000.
What are we seeing from builders now?
Many large builders are eliminating choices. Like Lennar is doing…instead of being able to pick your lot and floorplan and option groups, they are simply picking it all upfront and you can take it or leave it. Other smaller builders are trying to be more accommodating, but they are maxed out. This means most new builds will be done 9-14 months from now and this means interest rates and pricing are unknowns.
The cost of materials has hit records levels because of the pandemic and greed. The mills are charging historic levels for lumber…as an example a 2×4 went from $2.33 to $7.20 for just one. So, a valid question to ask is when prices of lumber goes down will prices of other new homes come down also. One would think, but with interest rates on the rise can you afford to wait?
With our current affordability if you can find the home with the payment that you are comfortable with for an extended period…then you should buy. The demand looks to continue for years to come. If you love the house, you are in and your rate is one percent or greater than current rates…then you should refinance.
If you need advice on your home purchase or refinance, just call me at 612-386-8600. We can discuss your options and what is the best plan for you!
I hope this blog on “Our new construction market in the Twin Cities” was helpful.
Please reach out to me if you have questions about housing in Minnesota at 612-386-8600.
Look for more articles and videos in the future on different aspects of real estate and our state of Minnesota.
Real estate is a wonderful investment!