03 Sep Where is our Minnesota real estate market headed
Where is our Minnesota real estate market headed?
Our market is constantly changing. This spring was a seller’s market with almost 50 percent less inventory than a year ago and we were receiving multiple offers on almost everything (except condos in St Paul and Minneapolis).
How is it now?
The inventory of homes is now less than 20 percent of last year and the pace of new listings is increasing every day. This is relieving the pressure of the seller’s market and creating a more neutral real estate market in Minnesota. The sellers have longer market times, less showings than before and buyers have more time to decide. This is healthy for our general real estate market. Why, because the low inventory offers where running 30-50k above asking price and this creating issues with appraisals and appreciation that was driving buyers out of the market. If those pressures continued then home ownership was not to be an option for many, and that level of appreciation was unsustainable. If we have 4 to 8 percent appreciation, then we will not be as susceptible to a real estate bubble and price correction, but 10-15% sets us up for a correction.
What does the rest of the year look like?
I predict the inventory of homes will increase, prices will not reflect the huge appreciation we saw in the spring, multiple offers will diminish, and real estate will become less scary for buyers wanting to buy a home. The late fall and winter will have less inventory than the spring, but there will be more opportunities to buy a home without as much competition and multiple offers. This is healthy for Minnesota real estate.
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!
The Anderson Team