08 Nov Twin Cities Real Estate Market Nov 8th
Twin Cities Real Estate Market Nov 8th
Here is our November 1st real estate update. It is officially fall season in Minnesota. And the leaves have almost all fallen. We are preparing ourselves for our winter season. This involves raking, tuning the snowblower and blowing out our sprinkler systems Sweaters are now a must. And jackets will be soon. Likewise, we have a different real estate climate this time of the year in Minnesota.
We review real estate facts and trends
In the fall we have always had a smaller buyer pool. As well as a smaller inventory of homes to purchase. Our days on the market increases and showings on homes decrease. It is normally a good time of year for price reductions. Of course, that depends on days on the market and current demand. However, we do find that each area and price range is different. On the other hand, our first-time home buyer market is still active in most areas. That price range is $175,000 to $300,000 in Minneapolis, St Paul and area suburbs.
Twin cities real estate market facts
Facts are wonderful since they give us insight into reading the trends. Still, it is up to us to interpret them. Our current affordability Index is 148, compared to 144 last year at this time. So, the higher the number means greater affordability. Currently, our inventory of available homes is 12,212. In comparison, to 12,844 in 2018. In other words, the inventory of homes for sale is down 4.9%. 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 1,094. As opposed to 1,003 pending sales last year. As a result, we have 9.1% more pending sales than last year.
More facts about the twin cities real estate market
We all benefit as sellers when values continue to raise. In so a median sales price increase 6.8% is a wonderful number. And $279,700 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 98.5%. This compares to 98.4% last year. Equally important indicator of market strength is days on the market. Therefore, 43 average days on the market reflects an excellent 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. There has been no movement in mortgage interest rates over the last week. The rates are 3.425% for VA, 3.375% for FHA and 3.99% for conventional. Furthermore, I know of a lender who has no or very limited fees at those interest rates.
My opinion of future real estate trends
Ton conclude, in 30 years of real estate I have seen many types of markets and trends. So it is my opinion that we will continue to have 2-4% appreciation in 2020. Likewise, 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. In addition, those areas will have negative pricing pressures for existing homes. Furthermore, interest rates will continue to be historically low for at least until the November election.
Your House and neighborhood real estate market
Finally, each price range and neighborhood feature’s its own specific trend and facts. In so, if you are interested in knowing the specifics for your home and more about the twin cities real estate market – Contact The Anderson Team.