Sell Your Twin Cities Home
Selling Your Twin Cities Home
Although the spring and summer months are traditionally considered the optimum time to buy and sell a home, did you know that the second-best season to Sell your Twin Cities home is the fall? Historically, if we assume normal market conditions, like the air on a crisp fall day, both prices and buyer activity tend to cool off. But as we know by now, this is not a balanced housing market but rather a red-hot housing situation that favors sellers in a big way. Inventory of homes for sale and days on the market continue their downward descent while on the other side of the coin median sale prices continue their climb to new heights.
Let’s explore the current market conditions which support a strong fall housing market for the Twin Cities which make a good argument for selling now.
Twin Cities Real Estate Data
According to the Minneapolis Association of Realtors, the week ending September 9th found inventory decreased 16.5% to 12,587 units for sale with new listings down 3.1% as well. However, pending sales were higher than the same time last year showing a 2.7% increase. When we compare the August 2017 statistics to August of 2016 its clear the market story is one of an ever-shrinking supply vs a growing demand, especially at the lower price ranges. Month’s supply of homes was 2.5 and was down 16.7%. However, the median sales price increased by 6.8% to $252,000 with buyers getting 98.5% of their original asking price.
The Mortgage Interest Rate
A qualified buyer with good credit can expect an interest rate under 4% for a 30-year conventional loan. With a strong credit score, you don’t need 20% or even 10% as a down payment. Conventional loans are available with 3% down. Watching those interest rates have become a national pastime for avid buyers across the nation, and though it is a given the Federal Reserve will not raise the rates this month there are strong indicators they will do so when they meet in December. Even a quarter of a percent can make a difference in affordability so many prospective buyers really want to get a locked in rate before the end of the year.
Twin Cities Housing Rents Continue Upward
While the interest rate remains low this is not the case with rents. The Rent Jungle report for August cited the average apartment in Minneapolis rents for $1683, a 1.13% increase from July. With a shortage of affordable housing, the upward pressure will remain on rentals with potential first-time buyers feeling the pinch, especially when they consider the fact that they can own a home of their own for less than they are currently forking over to their landlord.
Home Buyers Tax Incentives
Home buyers who close on a deal before the end of the year will be able to deduct mortgage interest, taxes, and possible some closing costs such as points used to secure the interest rate. For some buyers, being able to itemize deductions and paying fewer income taxes this year will be an incentive. More information is available in this great post by Kiplinger, but for the most accurate information for your particular situation, you should consult with your tax specialist or attorney.
Selling Twin Cities home in the Fall
Autumn, with its colorful splendor, is the perfect time for your home to shine. The chill in the air beckons people inside to enjoy hot cider in front of the fireplace. If you are lucky enough to have one, decorate the mantle to reflect the season. Change out your decorative pillows for warm inviting fall colors and place a fluffy throw across your sofa or chair. Hang an autumn wreath on the door and place a pot of Chrysanthemums on the front steps. Then just let the tree-filled surroundings do their job of adding the natural beauty that reflects the season in vivid orange and gold! The result, irresistible curb appeal.
This is a perfect season for buyers to find a warm and beautiful home of their own. So, why not accommodate them? Property values continue to rise and interest rates are historically low for now. The Twin Cities economy continues to grow and delight us in so many ways. We have lots of jobs generating an economic climate that inspires consumer confidence and a strong housing market. So if you have been putting off that decision to list your home why not do it now?
As always, thanks for reading.