Real Estate Market February 29th – Activity Report

Real Estate Market February 29th

Real Estate Market February 29th – Activity Report

The Twin Cities Area Real Estate Market

Weekly Market Activity

Here is our Real Estate Market February 29th, 2020 real estate update. We approaching the end of our winter season in Minnesota. And the days are now getting longer! So have the snowblower ready at a moment’s notice for those late season blizzards. Make sure your gutter extensions are on. Of course, we also have a different real estate climate this time of the year in Minnesota.

 

We review real estate facts and trends

The trends

In the end of the winter we have a smaller buyer pool. As well as a smaller inventory of homes to purchase. But now after the super bowl we starting to see our spring market. Our first-time home buyer market is always active in most areas. That price range is $175,000 to $300,000 in Minneapolis, St. Paul and area suburbs.

The facts

Facts are wonderful since they give us insight into analyzing the trends. Still, it is up to us to interpret them. Our current affordability Index is 160, compared to 152 last year at this time. So, the higher the number means greater affordability. Currently, our inventory of available homes is 7,692. In comparison, to 9.031 in 2019. In other words, the inventory of homes for sale is down 14.8%. In contrast, in 2008 we had almost 36,000 homes for sale in the Twin Cities. Lastly, our pending sales, which is those sold but not closed, is 967. As opposed to 849 pending sales last year. As a result, we have 13.9% more pending sales than last year. Our monthly supple of home is down to 1.6. Compared to 1.8 last year at this time. This adds pressure to our value appreciation.

More facts

We all benefit as sellers when values continue to raise. In so a median sales price increase 4.2% is a strong number. And $270,000 is the median sales price in the Twin Cities area. I have found a powerful market indicator is the comparison of our sales price to original list price. I’m pleased to say our average sale to list price is 97%. This compares to 97.1% last year. Equally important indicator of market strength is days on the market. Therefore, 67 average days on the market reflects a healthy real estate market.

Our current interest rates in the Twin Cities  

Interest rates increase the affordability of your home purchase. Consequently, low interest rates are a real benefit to real estate market in Minnesota.  In fact, mortgage companies love to provide mortgages to Minnesota. Because of our low delinquency and employment rates. But most importantly our low mortgage risk.  Accordingly, we have some of the best mortgage rates in the United States in the Twin Cities. Our mortgage interest rates are down over the last week. The rates are 3.125% for VA, 2.99% for FHA (yes, that’s correct) and 3.625% for conventional. There are down because so much money has moved into bonds. Due to the coronavirus concerns. Furthermore, I know of a lender who has no or very limited fees at those interest rates.

My opinion of future real estate trends

We have seen many types of markets and trends in the last 30 years. So, it is my opinion that we will continue to have 4 to 6 % appreciation in 2020. This is an increase of my previous 2 to 4% estimate, because of inventory levels. In addition, I predict the inventory of first-time homebuyer homes will not be insufficient to match demand. Also, the areas with an abundance of new construction will have longer marketing times for existing homes. Finally, interest rates will continue to be historically low for at least until the November election.

Your House and neighborhood real estate market

We find that each price range and neighborhood have its own specific trends and facts. In so, if you are interested in knowing the specifics for your home. Just call Jeff Anderson and The Anderson Team. At 612-386-8600

Your House and neighborhood real estate market

We find that each price range and neighborhood have its own specific trends and facts. In so, if you are interested in knowing the specifics for your home. Just call The Anderson Team.

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