04 Oct The Twin Cities Real Estate Market
The Twin Cities Real Estate Market
It is officially fall season in Minnesota. Most of us embrace the colder evenings, the fall colors and the smell of fall in the air. In addition, we have a different real estate market in the fall season in Minnesota. The twin cities real estate market is changing all the time. Here is an update of the weekly real estate activity.
We review real estate facts and trends weekly market activity
We have a smaller buyer pool in the fall as well as a smaller home inventory. Our days on the market increases and showings on homes decrease. For my listings, I recommending that is a good time of year for price reductions. However, that depends on days on the market and current interest. We do find that each area and price range is different, therefore it is important that it is reflected in the decision. On the other hand our first time home buyer market is still in high demand. That is the $175,000 to $300,000 price range in Minneapolis/St Paul and suburbs.
Facts give us insight to read the trends. But it is up to us to interpret them. Our current affordability Index is 144, in contrast to 156 last year at this time. That is not good news for us since the higher the number means greater affordability. Right now our inventory of available homes is 12,598. In comparison to 13,206 at this time in 2018. In other words, the homes for sale inventory is down 4.4%. In contrast in 2008, just before our market correction, we had almost 36,000 homes for sale in the Twin Cities. In reviewing our pending sales (those sold but not closed) we currently we have 1,158. As opposed to 1,187 pending sales last year at the same time. As a result we have 2.4% fewer pending sales than last year.
We all benefit as sellers when values continue to raise. In so a median sales price increase 6.9% is a wonderful number. $286,500 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 99%, compared to 99.2% last year. Another good indicator of market strength is days on the market. Consequently our current number of 41 average days on the market reflects an active real estate market.
Finally, every price range and every neighborhood has its own specific trend and facts. In so if you are interested in knowing the specifics for your home – call The Anderson Team.
Our current interest rates in the Twin Cities
Weekly market activity the interest rates increase the affordability of our home purchase. In addition, they can increase the number of available buyers to homes for sale. In so low interest rates are a real benefit to a healthy real estate market in Minnesota. Mortgage companies love to provide mortgages from Minnesota for their portfolios. Because of our low delinquency rates, low employment rates and at the same time our low mortgage risk. As a result we have some of the best mortgage rates in the United States in Minneapolis and St Paul. We have seen little or no movement in mortgage interest rates over the last week. Look at these great rates, namely 3.409% for VA, 3.291% for FHA and 3.875% for conventional. In addition, I even know of a lender who has no or very limited fees at that those interest rates.
Weekly Market Activity Report – CLICK HERE
My opinion of future real estate trends
In my 30 years of real estate I have seen many types of markets and trends. Therefore it is my opinion that we will continue to have 2-4% appreciation in 2020. I see the inventory of first time homebuyer homes will continue to be insufficient to match demand. The areas in the Twin Cities with an abundance of new construction will have longer market time. In addition, they will have lower pricing pressures for existing homes. Interest rates will continue to be close to their current levels for at least until the November election. Lastly, this fall and 2020 will be an stable and above average real estate market. Check back weekly for Twin Cities Area Real Estate Market information.