30 Sep Real estate market predictions
Real estate market predictions for the next six months
In this every changing economic and real estate environment here is what I predict for the next six months.
Inventory of homes – This fall and winter we should see inventory increase compared to last year. The days on the market should also increase.
Average sales price – Expect appreciation to come back down to a manageable level of around 4 percent. This will be helpful to quiet the doomsayers who thought we might have a housing bubble. Sales price is running at 99.5% of asking price right now and look for that to decrease slightly as days on the market increases.
Interest rates – I predicted this spring that we would see about 7.5% mortgage rates this fall and that is what will happen. Rates might increase to 8% by the winter and spring but look for them to go down once the Federal Reserve feels inflation is coming under control.
Look for our real estate market to be down about 25 percent in sales from the previous year for the next six months. This is the current trend now but we have had more buyers than sellers so this will create a more neutral Minnesota real estate market instead of the crazy seller’s market we have been experiencing.
I hope you found my blog on “my real estate market predictions for the next six months” helpful. Look for more blogs on all aspects of Minnesota, real estate, and the world around us.
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The Anderson Team