The number of homes for sale is down 22.2% from just a year ago. It's no surprise, then, that the number closed sales is down (but only by 4.1%). That means more buyers per listing, so houses are on the market for a shorter time and prices are going up.
This pressure will continue to raise home values even though mortgage interest rates seem are sure to go up in 2022. If you're looking to buy, it's time to get started before the number of buyers and interest rates increase. Let's connect and see if we can get the ball rolling toward finding and buying your next home or cabin. READ MORE ABOUT THE MINNESOTA HOUSING MARKET The supply of homes continues to be very low. This is causing the median sales price to increase and lowers the number of days a house is on the market. According to AXIOS NEWS, as of November 12, the number of days houses are on the market is now the lowest it has been since 1989. What does this mean for sellers? Your house is likely to sell fairly quickly and you should get a good price for the property you're selling. With current low mortgage interest rates and a low supply of homes, this is a great time to sell. What does this mean for buyers? Expect to compete with other offers. Understand that purchase offers will need to be very strong (competitive purchase price and reduced contingencies/demands). Prepare yourself for making several offers before you get once accepted. There are pros and cons to every market, but with the caring help and expert advice of a good Realtor® and brokerage, you can still make the move and find the house you need. I'm ready to help you, and with me you also get the professional support and expertise of the entire Anderson Realty team. Let's set up a time to talk about your plans, answer your questions, and get thing rolling for your situation. October closed sales dropped 16.2% compared to the previous October, marking a return to a more typical seasonal decline. This was reflected in the number of homes for sale, which shrank 18.6% over last year, with just 11,696 properties on the market statewide.
New listings sank 10.2% to 8,428. Overall, there was only 1.5 months of inventory available, down 21.1% from a year ago. Buyers who remained active continued to compete aggressively for homes, pushing the median sales price up 8.2% to $308,500. On average, sellers were receiving 99.7% of their asking price, an increase of 0.4% above last October. The heated summer sales season is showing signs of cooling, as closed sales of residential homes in Minnesota declined 3.0% compared to August 2020.
Despite shrinking inventory, buyers scrambled to purchase homes, competing with multiple offers that drove the median sales price up 11.3% to $316,000. The number of homes for sale declined 25.0%, leaving a 1.5-month supply of properties for sale. Read the full report: https://bit.ly/MNR_Aug21HousingReport “Economic growth and the acceleration in inflation have moderated in the last month, giving the markets comfort and leading to a stabilization in mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Heading into the fall, home purchase demand is stable, home sales remain firm and above pre-pandemic levels, and inventory of unsold homes is tight but improving modestly. These factors will allow for home price pressures to ease over the remainder of the year.” [emphasis added] CLICK THE ICON BELOW TO VIEW OR DOWNLOAD THE ONE-PAGE REPORT
Though buyers were out in full force in July, housing supply was outpaced by demand, as new listings declined -0.2% and closed sales fell -8.7% compared to 2020. As buyers chased scarce inventory with multiple offers, the median sales price rose +12.5% to $315,000, setting another historic high. On average, sellers were receiving 102.7% of their asking price.
Read the full report: https://bit.ly/MNR_July21HousingReport News stories like this are very interesting and highlight the intensity of the current market, but don't let them overwhelm you. We can help you navigate the market, find a home, and negotiate a deal. Let's connect and talk about it!
Closed sales were up +10.9% over last April as pending sales soared +32.0%, and new listings surged +18.2%, according to Minnesota Realtors® (MNR), the membership organization supporting all 22,000 Realtors in the state. But the rapidly heating market was tempered by the widening gap between buyer demand and available inventory. With just a one-month supply of housing inventory available, the number of homes for sale dropped 51.7% from 17,634 homes in April 2020 to only 8,519 homes this April. The median sales price hit $305,000, a +10.9% increase over last April, and days on market shriveled -25.0% as multiple offers on properties became the norm. On average, properties were selling for +102.1% of the original price, a 3.3% bump over 2020.
Over the last several years, millennials have rented to stay nimble and keep work opportunities open. Now, they're ready to buy. About 4.8 million millennials are turning 30 in 2021, and many are expected to enter the home-buying game if they haven't already. By the numbers, per a Realtor.com study: • 43% of first-time millennial homebuyers have been looking for more than a year. • 44% say they still need more money for a down payment and other closing costs. • 34% say they can't find a house in their budget. From AXIOS, April 12, 2021: CLICK HERE TO READ THE COMPLETE ARTICLE |
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DAVID BURKUMWhen buying or selling a home, it's important to understand the market and gain helpful insights to help you achieve the best results. Archives
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