by Minnesota Realtors Association
Spring is the season of new growth. After a long, icy winter, there’s nothing quite like the warmth of the springtime sun. Here in Minnesota, we sometimes find it hard to predict exactly when spring will kick into full gear (think blizzards in April), but when it does arrive, we welcome it with open arms.
Spring is also when we prepare our yards for gardening and outside entertainment, perform quarterly maintenance, and freshen up the inside of our homes.
This list might look exhaustive (and exhausting), but not all the items will apply to every home.
Phew! Once all this hard work is done, your final task is to pull out a lawn chair, settle in with a tall glass of iced tea, and soak in all the fresh spring air that you can.
In this little video, Brianna K does a great job demonstrating final house cleaning tips to be sure your home shines for showings. Too big of a job for you at the moment? Need help with lining up a cleaning service? I can help you with that. If you are thinking of buying or selling a home, or both, please contact me. I'd love to be your REALTOR®.
FROM MASHVISOR BLOG:
House values in the Minneapolis metro area have risen by 13.6% in the last year alone. However, for investing in real estate, since there is a limited amount of homes in Minneapolis, purchasers are sometimes compelled to compete, leading to higher prices and faster sales, which benefit sellers. In other words, based on the previous month’s major housing market statistics, demand outnumbers supply, providing sellers a price bargaining edge over buyers. As a result, there are fewer available properties than engaged buyers in the market.
VIDEO DATA SOURCE:
Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.
Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest Existing Home Sales Report which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there’s one big challenge.
Inventory Is at an All-Time Low
Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months’ supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say: “The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low.”
Earlier this month, realtor.com released their inventory data for January. It helps confirm this point. Here’s a graph comparing inventory levels for January over the last six years:
As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don’t stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that: “Seventy-nine percent of homes sold in January 2022 were on the market for less than a month.”
Odeta Kushi, Deputy Chief Economist at First American, explains it like this:
“A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales & lower inventory. Many resale transactions are happening so quickly that they ‘flow’ in & then out of the ‘stock’ between the fixed monthly measurement of inventory.”
What Does This Mean for Sellers?
Anyone thinking of putting their home on the market shouldn’t wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today.
Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.
In addition, Len Kiefer, Deputy Chief Economist at Freddie Mac, says:
“Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006.”
As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now. Don’t wait for that increase in competition in your area. If you want to sell in 2022 and are ready to start the process, today is the day to list your house.
If you’re ready to sell, let’s connect to get your house on the market while today’s inventory situation is in your favor.
Yesterday, I completed a course called The History of Diversity in Home Ownership. This course, provided by SPAAR (St. Paul Area Association of Realtors) is part of the continuing education requirements for all Minnesota REALTORS®. While this kind of class is of critical importance to those of us working in real estate, it helped me learn some important things I would want to know and understand even if I wasn't a realtor.
As a member of the National Association of Realtors, I follow a code of ethics that ensures equal professional services to any person regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. This is an important commitment because it serves to counter the sad history of housing inequality so many have suffered in Minnesota and all across the country.
Housing inequalities are about much more than housing. Unfair housing practices have contributed to all sorts of other problems and subsequent inequalities in our communities and nation today. In other words, it's not just a problem of the past, it's something that has shaped our present reality, and gaining a better understanding of where we've been is essential for building better future for all.
Would you like to know more? A deeper knowledge about housing equality isn't just for realtors like me. Let me encourage you to learn more about it! A good starting point would be watching the TPT (Twin Cities Public Television) documentary, Jim Crow of the North. It's an eye-opener!
CLICK HERE OR ON THE IMAGE BELOW
When buying or selling a home, it's important to understand the market and gain helpful insights to help you achieve the best results.