Realtor Reviews Minneapolis Housing Market

The 2018 housing market has sure been a wild ride. The year began with rapidly rising home prices and low mortgage interest rates. Bidding wars were the norm for highly desirable homes. It was not unusual for sellers to find a buyer in the first few days after putting their house up for sale, generally at the total asking price or even above. Sellers were riding high while buyers struggled to close a deal on a home.

But in the last few months of the year, we begin to see a shift in the market. Prices are finally stabilizing or increasing at a slower pace. Interest rates reach 5.2 percent, an 8-year high. Now rates have fallen back to 4.59 as a benchmark for a 30-year fixed-rate mortgage. The market still favors sellers but to a lesser degree.

2017 compared to 2018

• new listings down -0.3%
• pending sales down -3.6%
• closed sales down -3.4%
• overall median sales price up +7.7%

Now what you have all been waiting to hear. What are the takeaways for the 2019 market?

The Economy

The economy right now is still vibrant but showing signs of moderating. Everything that happens in the future will hinge on the trade war.

If the US and China reach a trade agreement by March, that should send the stock market soaring and consumer confidence along with it. However, if the trade war continues and the tariffs become even more punitive, that will own the world economy and the US along with it.

Now you might ask, why do we care, and how does China affect the housing market?  It’s about interest rates...