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's 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 month's supply of inventory at 1.8. Still, buyers persisted and closed on 4595 homes this year for an increase of 3.8%, and pending sales, not to be outdone are up 4% more than November 2016. Listed homes spent less time on the market and closed for higher prices as well sitting at 56 days with a median sale price that rose by 6.5% to $245,000.
Minneapolis-St. Paul Housing Market Year to Date
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 same holds true for old electrical systems with fuse boxes and ancient plumbing. If an Octopus furnace, the monster in the basement also known as a gravity furnace, with asbestos wrapping around the ducts lives in the basement that will generally have buyers looking for the door quickly.
It would be in the seller’s best interest to address major issues such as these beforehand, but if...