The Twin Cities Housing April 2018 Snapshot
I’m not going to lie to you; housing inventory is at a new all-time low. However, we do have a reason for optimism as new listing numbers are improving. Let’s also keep in mind that the early part of April felt more like January this year, with significant snowfall and low temperatures which may have held some potential sellers in winter hibernation mode. Still, sellers and builders are seeing a continued strong economy and are encouraged by a market poised to bestow significant financial gains.
For buyers, this market is still certainly challenging. Home values continue to rise while days on the market are fewer. The median sale price for April was $266,000 up 8.6 percent and days on the market fell 10.2 percent compared to April of last year which drives home the fact that buyers do not have the luxury of dawdling when it comes to offers. Additionally, buyers now have rising interest rates to contend with as well.
Twin Cities Economy and Housing Market is Strong
Sell Your Home When The Time Is Right For You
It’s no surprise that many people advocate that the best time to sell a home is in the Spring. Part of the reason this theory has evolved is that families want to be established in their new homes by the beginning of the school year in September. While this does make sense for families with children, when it comes to when to put your home on the market there are no one-size fits all scenarios.
Even though Spring may be considered prime time for home sales by many in the industry, there is no perfect time for everyone. Every situation is different, and when you are personally ready to sell, that becomes the best season for you. However, there is one piece of home-selling wisdom that is always true no matter what time of year you sell.
Can you guess that one sliver of home-selling wisdom? It’s the preparation of your home to look its best in winter, spring, summer or fall. Making an outstanding first impression on buyers will determine how quickly you sell and how high a price you obtain. A home that is move-in ready will face a cleaner offer with fewer if any contingencies. Even in this strong seller’s market, we find ourselves in right now, the condition and appearance of your home do matter.
It makes the most sense to take the time to get your home in tip-top shape for the fussiest of fussy buyers. If you think your...
2228 Kings Valley Rd E, Golden Valley, MN 55427
3 Bedrooms, 3 Baths, 1690 square feet offered at $224,900
Open House Saturday, May 5th 12:30 to 2:00 PM
Open House Sunday, May 6th 12:30 to 2:30 PM
If you have been looking for an updated and well-appointed townhome in Golden Valley for less than $250,000 you know they are hard to find. This end unit has been renovated from top to bottom and has all the features buyers are looking for and then some.
The floorplan is open and filled with light. The design and flow of the space were well designed with the intention of providing an abundance of storage and living areas to accommodate the individual needs of your family.
The higher-end kitchen renovation features an abundance of cabinets, work space, beautiful ceramic tile backsplash, stainless appliances and a breakfast...
The Twin Cities Housing Market Snapshot
Many consider March to be the kick-off month for the busiest Real Estate season, spring. The market experienced a slight cooling with pending and closed sales both down. Interest rates have climbed and been hovering around 4.5% which is the highest they have been since 2013. Buyers may be taking a breath, and holding back again to re-evaluate and rethink their strategy. They may be considering the options of paying more each month or settling for less house.
Still, days on the market continue to decline, homes are still being sold at asking price or above, and the median sale price up 9.8% over last year. Inventory of homes, however, continues to shrink. Inventory declined 26.1%. Sellers continue to play it coy with new listings also down 17.5%. These numbers seem to indicate that the slowdown in sales is more the result of low supply rather than a lack of enthusiasm on the demand side of the equation.
Spring – The Best Time to Sell Your Home!
It’s officially Spring! Birds are chirping, flowers blooming, and “Home for Sale” signs as plentiful as dandelions on your lawn after a rain shower. Wait! What? The calendar says Spring but that is apparently fake news since I am looking out the window at 18 inches of snow we were just gifted and shaking my head.
The truth is the only Robin I saw was wearing a parka and snow boots. Not a single crocus is shoving a brightly hued head out of the earth. Even the forsythia has yet to bloom. And Home For Sale signs are not so plentiful at all with inventory levels of available homes at an all-time low in the Twin Cities.
However, what I have witnessed is an army of serious home buyers out in the marketplace. Yes, a plethora of buyers whose pockets are bulging with pre-approval letters, down payments and closing costs. Isn’t that great? It depends. It’s outstanding if you are a seller.
The Twin Cities Housing Theme is Short on Supply, Big on Demand
Right now there is an ...
Not a Market for the Fainthearted
Looking at the housing market in the Twin Cities for February we are going to be focusing on four factors; an ever-shrinking supply of inventory, declining home sales, a consistently upward trend of median sales prices, and rising interest rates. The market activity we are seeing here pretty much reflects what is happening across the nation.
While we might not expect prices to climb when sales fall, this downward trend is more a result of seriously limited inventory levels coupled with strong demand. There are simply too many buyers chasing too few homes and for a nervous buyer, this may be situation impossible.
The Market in the Twin Cities is Starving for Listings
New listings declined 8% over February of last year while inventory levels dropped 23% putting the supply of homes at 1.5 months. At the same time, the median sales price of homes in the Twin Cities metro rose 12.7% to $250,000. This rise in prices is partly a reflection of bidding wars on desirable properties where supply is so limited.
The same theme of the last 2 years continues with a vengeance: ready, willing, well-qualified buyers who desperately want to become homeowners being thwarted because there just not enough listings to go around.
What Rising Interest Rates Mean for Twin Cities Housing
8268 Jonquil Ln N, Maple Grove, MN 55369
Offered at $299,900
Link to the Video Walkthrough Link to the 3D Interactive Showing
Enjoy the peaceful setting of 8268 Jonquil Ln N. This Williamsburg end unit townhome feels brand new and has every upgrade offered by Mattamy Homes when it was built in 2016.
Open Houses March 17th and 18th 3:15-4:30PM
2016 Mattamy Homes End Unit
Incredible location with access to miles of trails. SW facing end unit gets beautiful natural light and has idyllic views of the Central Park pond and playground.
8268 Jonquil Lane N Features a Chef's Kitchen
The chef's kitchen has a mosaic tile backsplash, gas range, stainless steel appliances, and quartz countertops with breakfast bar. The home is equipped with a Kinetico whole house water filtration system, dual-tank water softener, and reverse osmosis (RO) drinking water...
4724 Oakland Ave Minneapolis MN 55407
Psst! Look over here! We have an outstanding new listing being offered pre-MLS. This attractive two-story home at 4724 Oakland Ave is located in the Field neighborhood, the heart of South Minneapolis. It was built in 1921 and with its attention to detail and abundance of architectural interest, it certainly shows off the distinctive charm and character of the era.
Pre-MLS Open House March 17th from 12-2pm
While the finishing touches are being applied to this gorgeous home, it is offered for sale pre-MLS for $419,900. If you would like a sneak peek at this home before our professional stagers and photographers come through and perform their magic, call me, Joe Houghton anytime. I'm the lucky listing agent. Want more right now? Visit the video tour of 4724 Oakland Ave Minneapolis MN 55407 on our YouTube channel.
The Field Neighborhoods Newest Listing is Currently Non-MLS
4724 Oakland Ave Minneapolis MN 55407
This remodeled two story home in the Field neighborhood of South Minneapolis is being offered Non-MLS until the finishing touches and professional photography are complete.
PRE-MLS OPEN HOUSE MARCH 17TH FROM 12-2PM
For a full video tour of this Home Click Here
January Twin Cities Housing Inventory Sinks Lower
We are now several years into a housing market where buyer demand is strong and inventory of homes for sale is limited and ever shrinking. This buying mania has been fueled largely by a strong economy with low unemployment, a robust stock market, and historically low mortgage interest rates. In addition, the high cost of renting has made owning a home the best option in the Twin Cities, as well as a wise financial decision. It was the strong incentive many first time home buyers needed to get off the fence and pursue the American dream of homeownership. And chase that dream they did!
Buying vs Renting Pros and Cons
We just capped off a record-breaking year for real estate. The story for 2017 was powerful across the nation. In the Twin Cities, the median sales price reached an all-time high. Closed sales broke a twelve-year record high even with inventory levels at a 15 year low. There were lots of reasons for sellers to celebrate. Homes for sale spent less time on the market with full price offers the norm. The market was rocking and tenacious buyers were the rocket fuel that propelled it.
As we look at the first month of the brand new...
Do Your New Year’s Resolutions Need a Reboot?
Are you among those people who started the New Year with some well-intentioned resolutions only to find that your resolve has dwindled? Perhaps those goals that have slipped below the horizon of your consciousness during the day come back to haunt you at night like an insect buzzing around your head as you try to fall asleep.
According to statistics, by February 42% of us who made resolutions have not maintained them. We share your pain. We know the feeling when our willpower is on life-support and the loudest voice we hear is shouting self-criticism and blame.
It’s not easy to feel like you set yourself up for failure back on January 1. Statistics also tell us that 42% of Americans fail to achieve their established goals on a regular basis with only 9% feeling they had a successful outcome. However, and here is the good news to hang your hope on, people who start out the year with defined resolutions are ten times more likely to achieve their goals than those who do not make any.
December Housing Inventory Took a Nosedive as Home Values Soared
The relentless story of happy sellers and frustrated buyers continues. This was especially true in December. Inventory levels plummeted 27.5% over last December and month’s supply dipped to 31.6%. With the ever-shrinking availability of homes to purchase under $500K, the dream of homeownership remains elusive for many first time buyers.
Although mortgage interest rates remained steady at about 4% in the last half of the year, the high demand coupled with low inventory situation caused median sales prices to rise higher. This forced some buyers to adjust their expectations of how much house they could afford.
While year-end market conditions were a nemesis for buyers, sellers had a lot of reasons to celebrate. Homes spent less time on the market with full price offers the norm. Bidding wars on very desirable homes brought in offers above ask price.
Our Favorite Blog Posts of 2017
It’s that time again. As we say goodbye to the old year and look ahead to 2018 with great expectations it is always worthwhile to reflect on the last 12 months and review the work accomplished with some satisfaction. On Our Twin Cities Home Blog, we try to bring you the best information we can find on everything real estate from buying and selling a home to living well in our vibrant and beautiful Twin Cities Metro.
As we look forward to more good work this year we’d like to share some of our favorite posts with you again. So without further ado, here is what we think deserves a second look before we close the books and begin the first chapter of the brand new year!
Has a year really passed since I wrote this one? It was one of my favorites because I am proud to work with Joe all 365 days of the year. He has a great real estate story and a great philosophy on how he approaches real estate so I felt it appropriate to tell it one more time.
Saving more money is a ...
November Twin Cities Hot Housing Market
The end of the year fast approaches and we are almost there. The theme of the story for 2017 has been one of a strong sellers’ market and relentless buyer demand especially in the first time home-buyers price range. It has remained constant through 11 months despite rising interest rates, political turbulence, and a tax overhaul whose effects on the housing market are still uncertain.
Even though the 30-year mortgage interest rate just surged to a five-month high for the last week of December at 3.99%, it is still lower than last year at the same time and a historic bargain. The Minneapolis-St. Paul business community continues to thrive economically and with the third lowest unemployment rate in the nation, an abundance of jobs consumer confidence remains high and continues to support a strong housing market.
Delving deeper into the numbers for November of this year vs. November 2016, find new listings 6.7% lower, inventories 24.1% lower with a months supply of inventory at 1.8. Still, buyers persisted and closed on 4595 homes...
Twin Cities Buyers Know What They Don't Want
The one thing most sellers have in common is that they are unable to look at their property with a dispassionate and critical eye. The longer they have lived in their home, the more emotionally attached they become. Many simply cannot understand that the cracked tile in the foyer they have lived with for 10 years, should be of concern to a buyer. Or the magenta bedroom walls they adore would be another person’s decor nightmare.
After being a realtor in the Minneapolis-St. Paul metro for 16 years and closing on close to 1000 properties, I have shown my share of homes that made buyers run for the exit shouting, “next please”! I have been the listing agent challenged with marketing the lime green home with hot pink trim. So over the years, I have probably not heard it all, but enough to tell you what makes a buyer look like he just sucked a lemon. Sellers can and should take matters into their own hands before they put their home up for sale to avoid having their home sit on the market for a long time and sell for less money.
Big Ticket Replacement Items
A house with a roof that is at the end of its lifespan or siding that needs to be updated is a major red flag for buyers. The...
Is 2018 the Year of the Home?
When you make the transition from renter to owner, you become the recipient of many benefits, both practical ones, and emotional ones as well. For many people, homeownership is an important rite of passage on the highway into adulthood, probably second only to becoming a parent. Why? Because owning a home enables you to assume more control of two very important aspects of your life; your net worth and your personal environment. Most people would find that pretty exciting stuff! Many of us, when we become adults especially, want to have as much control over our lives as possible, or at least feel that we do!
So if 2018 is your year to purchase that downtown Minneapolis loft, starter home in the burbs, or downsize to the townhome you have always dreamed of, we have some great tips we are dying to share with you.
Prepare Your Finances
If you haven’t already done so, contact a mortgage broker or banker and get pre-approved. This is the only way to know for certain how much house you can afford to buy and what amount of cash you will require for ...
October Twin Cities Housing Market
As we approach the end of the year, it appears that the Twin Cities housing market story for 2017 is pretty much repeating the theme of strong and persistent demand for housing with an ever-shrinking supply of homes to buy below $500,000. We shouldn’t be surprised at the continuation of this trend when we look at interest rates and our local economy.
The 30-year mortgage interest rate dipped from 4.3% to 3.9%, an amazing bargain when you consider the long-term average rate is 8%. While nationally the unemployment rate is 4.1, in our own Minneapolis-St. Paul Metro it is 2.9, the third lowest metro unemployment rate in the country. Our thriving economy is diverse and vibrant, our workforce talented, our schools first-rate and with a robust arts community and 4-season recreation options makes our quality of life second to none. It’s no wonder we have one of the highest homeownership scores in the nation.
As we take a closer look at the statistics for October this year versus last year, we find new listings increased 3.1% although inventory of homes available fell a whopping 18%. This puts the month's supply of inventory at 2.2 which is 18.5% lower than last year. An undeterred 4994 buyers closed on a home last month, up 0.3% and pending sales were also...
Should I Buy a Home This Winter or Wait for Spring?
If you are a Twin Cities’ buyer that missed out on snaring a deal this past spring or summer, you might be asking yourself, your family, your friends and your realtor whether or not you should keep your search ongoing or simply hunker down for the winter months and venture forth again when the forsythia bloom. Maybe you just started the process and are thinking of putting it on hold until the new year arrives or wondering if there is an advantage to staying the course. As a realtor, I can tell you that I am being asked that question from many of my clients, especially the first time buyers.
Because everyone has a story and no personal situation is exactly the same, there is no right or wrong answer. But generally speaking, I tell my buyers that nobody is too cool for thermal underwear in Minnesota. Let’s get some and keep looking for that home. Patience is a virtue and tenacity pays off in the end.
To those just getting started in the process, if you have your pre-approval letter in hand start your search and if not get that preliminary work completed and then press...
How to Have a Spooktacular Halloween!
Here at House Houghton, Halloween is a favorite holiday. The excitement is building with my four boys and even the family dog wants in on the act. One of the best things about it in the Twin Cities is the celebration is ongoing for the entire month of October. There are events in Minneapolis, St. Paul, and the surrounding suburbs to suit every age and scare quotient. For some of us diehard fans of this delightfully spooky event, we never grow too old to embrace it and as we reach mid-October, the plans for a fast approaching Halloween get serious.
Halloween conjures up images of haunted houses, black cats, jack-o-lanterns, ghosts, goblins, and witches flying around on broomsticks. Costume choices range from satisfying our alter ego and dressing as a favorite character from history, choosing something traditional like a witch or ghost, or going more trendy and masquerading as someone currently in the public spotlight. Decisions! Decisions! Then when the costume is chosen where to go and what to do. In the Minneapolis-St. Paul Twin Cities metro, there are so many options ranging from fun and spooky to those that are looking to be blood-curdling terrified! Wherever your spooky-meter registers, we have suggestions for you. Here are some great activities aimed at delivering the best Twin Cities Halloween...
Let this Magical Wayzata Home Enchant You
This Beautiful Home is No Longer on the Market.
243 Bushaway Rd, Wayzata, MN
Tucked away on an idyllic wooded lot in a cozy corner of Wayzata is our newest listing. If you are looking for a great family home that is close to all the city has to offer yet located in a community with a small town feel and a nationally recognized school system we have the perfect choice for you. Consider this gracious and elegant 5 bedroom...