Twin Cities Real Estate

Twin Cities Housing Market Predictions

Twin Cities Housing Market Outlook for 2024

Cityscape with a futuristic globe

As we navigate through 2024, the Twin Cities Metro area continues to showcase resilience and progress in the real estate sector. Following a trajectory of recovery, the market remains dynamic, characterized by a blend of low-interest rates, moderated home prices, and a buoyant economic landscape underscored by strong employment growth and economic vitality.

Twin Cities Real Estate Outlook

The forecast for the Twin Cities Housing Market in 2024 remains positive, anticipating a steady yet more sustainable growth compared to the rapid surges of the past. Home values in the Minneapolis-St. Paul Metro are expected to see a healthy increase, potentially ranging between 4-6% over the year. Interest rates, while experiencing slight fluctuations, are predicted to stay attractively low, hovering around 1-2%. The decline in foreclosure rates is set to persist, contributing to the overall stability and sustainability of home values in Minnesota, with foreclosure inventory remaining significantly low. As we advance into the year, signs of a stable housing market become increasingly evident, promising a balanced season for both buyers and sellers as we approach the spring season. The anticipated trends suggest a vibrant market scenario unfolding.

Positive Developments for Sellers

  • The early months of 2024 are witnessing a low inventory of homes for sale, which is driving up home values.
  • Rising home prices are expected to lift more homeowners out of "underwater status," encouraging them to list their properties.
  • The supply of existing homes on the market is likely to stay constrained, benefiting sellers.
  • Individuals who have...

Sell Your Home with Remax Results

Becoming One of the Best Real Estate Blogs in the Twin Cities | 2024 Outlook

Becoming One of the Best Real Estate Blogs in the Twin Cities

A Year of Progress and Innovation

2023 was a remarkable year for us, marked by significant milestones and achievements. Our commitment to excellence saw the implementation of cutting-edge tools and strategies, from the enhanced MLS home search site to the integration of drone photography and 3D virtual tours. These advancements not only set a new standard in property marketing but also significantly improved the home buying and selling experience for our clients in Minneapolis-St. Paul and beyond.

Strategies for 2024: Elevating Your Home's Market Presence

As we navigate 2024, our focus remains on leveraging technology and creativity to market your home effectively. The real estate landscape is continually evolving, and so are we. This year, we plan to enhance our digital footprint by introducing scripted video walk-through tours, further enriching our already robust online presence. Social media platforms like Facebook and Pinterest, known for their growing popularity among homebuyers, will see increased activity from our team, aimed at showcasing your property to a broader, more engaged audience.

Beyond Selling: A Resource for Homeowners

Understanding that our relationship with clients extends far beyond the sale, we're committed to being a continual source of value. Our blog will feature a mix of industry insights, home décor ideas, and lifestyle content designed to inspire and inform. Whether you're looking to sell your home with Re/Max Results and the Minnesota Property Group or simply seeking advice on enhancing your living space, our blog...

Realtor Reviews Minneapolis Housing Market

Top Minneapolis Realtor Reviews: Navigating the Minneapolis Housing Market

Top Minneapolis Realtor Reviews: Navigating the Minneapolis Housing Market

As a top Minneapolis realtor, providing insightful reviews and analysis of the Minneapolis housing market is paramount. The journey through the evolving landscape of real estate in Minneapolis reveals a dynamic interplay of economic factors, buyer and seller behaviors, and the pivotal role of real estate professionals in guiding clients through complex decisions. This review delves into recent trends, offering a comprehensive look at what makes the Minneapolis market tick.

refreshing minneapolis living room picture

Market Dynamics: A Realtor's Insight

Reflecting on the transformative phases of the Minneapolis housing market, from the bustling activity of the late 2010s to the more nuanced dynamics of today, it's clear that understanding market trends is crucial. As a leading Minneapolis realtor, my observations are grounded in a deep analysis of market data, ensuring that clients receive the most current and actionable information.

  • Inventory and Listings: The gradual increase in new listings in Minneapolis has been a welcome development, providing more options for buyers. This shift towards a more balanced market underscores the importance of timely, informed decisions, a cornerstone of the advice provided in top Minneapolis realtor reviews.
  • Mortgage Rates: The fluctuating mortgage rates continue to influence buying power. My role as a top Minneapolis realtor includes helping clients navigate these changes, ensuring they understand the...

Housing Market Trends

Local and National Housing Market Trends

 Let’s be honest. Nobody can predict the future though we can look at trends and data and use them to create reasonable scenarios of what the months ahead will hold in store for us. Why is studying trends significant? Those who prefer to plan for tomorrow help us make better decisions that get us closer to achieving our goals.

While we may not know what will happen, it is safe to say trends are constantly evolving. Real estate isn’t different in that respect. What was hot in housing last year, maybe so over now. That is not to say we can keep up with the latest, and let’s face facts, if you expect to live in your current home for the next ten years or more, you probably don’t care.

But if you are in the process, on the brink, or planning to buy or sell a home in the coming months, knowing what’s happening in the market today can make the difference between a good or bad experience. What makes it even more critical is the effects COVID-19 has had on just about everything in our lives, including how we search for, buy, sell, and perceive real estate.

Housing Trends That Affect Buyers and Sellers in MN

Here is what you may want to know about some of the current real estate trends and the ways they may affect buyers and sellers both nationally and in our own Twin Cities Housing Market.

When housing demand outstrips the supply of available homes for sale, we experience a seller’s market. It seems like it’s been this way forever at times. While it may not be that long, the housing market has been trending in favor of sellers since 2012, a long stretch. We were very wrong for any of us who thought the pandemic might change the trend. If anything, the demand for housing seems to be more robust than ever.

Both locally and across most of the nation, property showings were higher in July than last year, with multiple offers on desirable...

Twin Cities Housing Review October 2019

The Fourth Quarter nationality

It seems like last week I was still sporting shorts and flip-flops, yet here we are fully ensconced in fall, with winter just around the corner. As we focus on Thanksgiving and gratitude, I am thankful for the strength of the Twin Cities housing market.

The cold months may be the slowest time of the year, but due to historically low mortgage rates, housing demand remains strong while home values continue to rise. Buyers should notice and not let the cold weather stop them from following their dream of homeownership.

The Story of Low Inventory and Strong Demand Continues

If you are looking for a home at the lower price points, you face competition. There are still not enough homes to satisfy the hunger for homeownership. Although we saw a 3.8 percent increase in new listings compared to October of last year, inventory fell short by 5.8 percent. At the higher-priced end of the market, it is either balanced or leaning in favor of the buyer.

Property Values

The trend for rising home values began in 2011 and continues. For October, sellers enjoyed a 5.7 percent increase in the median sale price last year at this time. At the same time, homes spent 4.2 percent less time on the market, approximately 46 days. With demand strong, home values rising, and interest rates low, sellers should be encouraged.

Interest Rates

We did experience...

Outstanding Plymouth Home Has It All

This is how Top Plymouth Realtors Sell Homes

We found a treasure of a home in Plymouth, and we are excited to share it with you. This 2700 square foot residence sprawls lavishly along a circular drive, surrounded by enchanting gardens of flowering perennials, shrubs, and trees.

This home has been meticulous and lovingly maintained by the current owners since 1973. It's easy to see why they moved in and never wanted to leave. This property has so much to offer regarding lifestyle, comfort, and location. Let us tell you some of the features we love about this home.

Outstanding Location

Plymouth, MN, has been on America's Best Places to Live list on three occasions and once including winning the #1 spot in 2008. With an outstanding location 12 miles northwest of downtown Minneapolis, extensive parks and trails, several bodies of water for recreation, convenient shopping and entertainment, excellent public and private school options, it is not surprising that it is one of the sought-after western suburbs.

Right around the corner from this home, you will find a wide variety of shopping and dining options. The expressway is 2.5 minutes away, which opens the entire metro access. Medicine Lake is a 10-minute drive to the west, and downtown Wayzata and Lake Minnetonka are 10 minutes to the south. Did we mention that your kiddos would be attending Wayzata Schools? Now we did!'

Great Curb Appeal

So much about this home is impressive and unique. Note the mansard roof and the architectural shingles (replaced 2017), one of the design details I love about this house. The white brick entrance steps were added last year. Striking red double front doors and two lion sculptures greet you as you enter the home.

Outstanding Floor Plan

We love the layout of this home which lends itself seamlessly to the outdoors. The large windows soak every room with sunlight and provide views of the groomed expanses of lawn and...

Twin Cities Housing Review April 2019

Minneapolis-St. Paul Real Estate Big Picture

The Spring Housing Market is in play. Prices are on the rise as inventory levels continue to decline. Hopeful buyers in the lower price range are jumping on desirable properties hoping their offers rise to the top of the heap.

Months supply of inventory is improving in the mid-price housing range. We see steady sales activity in the higher price ranges, while in the lower tiers, buyers are still finding that landing a deal on a home to be a challenge, especially for desirable homes in sought-after locations.

What’s Up and What’s Down

Compare new listings to April of last year; we see an increase across the 16 county Twin Cities region of 4.5%. Closed sales were down 6.9%, while the median sale price rose 5.2%. Pending sales were also down 1.1%, and inventory levels were 1.2% lower.

April weather was wintery at times, which discouraged buyer traffic and slowed sales. This trend was seen across Minneapolis and other parts of the nation. Higher prices, less affordability, and low inventory combined forces dampening sales.

Let’s Dig a Little Deeper into the Housing Stats

While the median sale price rose 5.2% to $281,000 and days on the market, rose 5.7% to 57 days. The price range with the most significant gains in sales was $1,000,001 and above, showing an increase of 10.7 percent.

Condos enjoyed the most substantial price increases, up 12.4 percent to $179,900, while homes...

Minnetonka Real Estate Agent Marketing

Minnetonka Real Estate Agent Marketing 

Do you dream of a home that is a peaceful suburban oasis yet near a vibrant urban center? You can have it all when you purchase this outstanding 4000 square foot two-story Minnetonka home nestled into idyllic landscaped surroundings.

This elegant, graceful residence features spacious living areas soaked in sunlight. The flow of indoor and outdoor spaces is seamless and ideally suited to entertaining friends and family. The resort-style backyard with an inground pool is fenced-in for privacy. 

A Minnetonka Home for All Seasons

During the summer, enjoy the backyard sanctuary and luxury of your heated pool. Relax on one of two decks and enjoy dining al fresco.

In the evening or the high heat of the day, relax on the screened-in porch. When fall descends on Minnetonka and the nights turn chilly, sit around the fire pit with a glass of vino or your favorite local brew.

When winter arrives, enjoy the luxury of lighting up one or all of the three fireplaces. Choose your favorite spot for a quiet evening with a book and a cup of herbal tea or conversation with family and friends.

A dramatic front entrance raises expectations for what lies beyond the front door. It makes a memorable first impression, reminiscent of a country home in the south of France. Professional landscaping, a paved front patio, crisp white columns, a...

Twin Cities Housing Review December 2018

Minneapolis-St Paul Housing Data

As we say adios to 2018 and move into the new year, expectations include some long-awaited changes. In the last half of the year, we saw increases in new listings, decreases in sales, and median sales prices on homes rising more slowly.

The increases we are experiencing in no way are enough to balance the market at the lower pricing tiers. However, first-time buyers and downsizing boomers will begin to find more home buying options in the coming year. That fact alone will make buyers smile.

A Look at December Housing Numbers

Looking at a comparison of December 2018 to the same time last year, we see new listings up 3.5 percent, closed sales down 9.9 percent, list price received down 0.2 percent, and the median sale price of $258,000 up 4 percent. Pending sales showed a decline of 3.3 percent, while the month’s supply of inventory rose 13.3 percent. Days on the market decreased by 6.6 percent.

What story do these numbers tell us about the housing market in Minneapolis and Saint Paul? Pretty good news. We are finally starting to see more housing choices at lower pricing levels. Sellers are more flexible when they receive less than full-price offers. This situation takes some pressure off of buyers.

Sellers also have reason to smile. Property values continue to rise, with median sales prices up 4% over December 2017. Additionally, sales of homes are still brisk as we see days on the market drop to 57 from last year’s 61 days. Rising prices and shorter time on the market means demand for housing remains strong and desirable properties are moving to active contingent status quickly.

The Economic Picture...

Twin Cities Housing Review November 2018

 Minneapolis-St Paul Housing Overview

As we approach years’ end, we see some subtle changes in the Twin Cities Metro housing market. The increase in inventory of homes for sale was10.5 percent over last month giving home buyers something to rejoice. This inventory boost by is by no means enough to bring the market into balance but does bring us closer. For consumers who have been trying to buy a home for several months, it was welcome news.

What’s Up and What’s Down

As we compare November of this year to November 2017, we find new listings up 12.6 percent, closed sales down 0.9 percent, the percentage of list price received down 0.1, and the median sale price of $265,150 up 8.2 percent. Meanwhile, pending sales were down 5.2 percent, inventory levels rose 2.3 percent with months supply up 10.5 percent. Days on the market fell 7.1 percent.

So while inventory is increasing and sales are decreasing, we are seeing more price reductions and fewer deals closing for full price offers. Although housing prices are still higher than last year, they appear to be slowing down. Properties for sale are still spending less time on the market than last year, an indication that demand is still robust, and buyers are scooping up homes quickly.

The Economy Continues to Perform Well

Our local economy remains strong. The unemployment rate for November in the Twin Cities was 2.8 percent, well below the national average of 3.7. Confidence among consumers...

Best Year End Advice For Real Estate Agents

Best End of Year Advice for Real Estate Agents

In just a couple of weeks, the New Year will be upon us. It was a fast twelve months, wasn’t it? It feels like I was talking to you about fall home maintenance only a couple of weeks ago when it was actually in early October. Many trees were still stubbornly holding on to a few leaves, there was no snow on the ground, and we had not even had a hard frost. Now here we are decking the halls and talking about closing out the year and getting ready for 2019.

Admittedly I approach the new year with excitement and optimism tinged with a dash of trepidation and uncertainty. The new year is, after all, filled with mystery! What new clients will I meet? Which buyers and sellers will I reconnect with in the coming year? What changes in the market will surprise me? Which of my predictions will be proven correct? Am I ready for what lies ahead and if not what do I need to do so I don’t fall short of my expectations?

As the days and weeks of the next year unfold, I plan to be ready. One of the ways I prepare is by starting the year without the clutter of the last twelve months. It starts now. Here are some tasks we can take care of before January is on the doorstep because ready or not, soon 2019 will be knocking on the front door!

Last Chance for Tax Deductions

Do you plan to take a real estate or business related course? Now would be a good time to sign up. Not only is the beginning of the year slower paced, but if you sign up now before 2019, you may be able to take the deduction if applicable on this year's taxes. 

Make a charitable donation. Since we are talking about 2018 tax benefits, now is your last chance for contributing some cash or assets to your favorite non-profit.

Be Prepared With a Fresh Look

When we talk about business needs for a Real Estate professional, don’t overlook your car. If your lease is expiring this year or you plan to purchase a new vehicle do the...

Look What We Found in Edina

Mid Century Modern Homes in Edina MN

Who says you can’t have your cake and eat it too?  Tucked away in a lovely neighborhood of Edina we fund a delightful mid-century rambler. This fabulous tastefully updated family home has all the amenities on today’s family wish list.

You cannot beat this location. Edina is one of the most desirable 1st tier suburbs of Minneapolis. The new owners will appreciate the easy access to both Highway 100 and 35 and the Crosstown. Surrounded by parks, lakes, shopping, fun, and food with a 15-minute commute to downtown Minneapolis, what more could you ask for? Great Schools? You have that too. Edina has a nationally recognized school system which has been a magnet for families with kids over the years.

Why Buy a Mid Century Modern Home in Edina Mn

Most home buyers today want an open floor plan. This home has it in spades. The family room incorporates the dining area and flows directly into the kitchen. Note the abundance of windows to draw in the natural light and the beautiful hardwood floors. Neutral white walls make everything look so fresh and new. You know you will love that fireplace when the Minnesota winter arrives. Here it is. New. White cabinets. Lots of them. Subway tile. Butcher block counters. Professional grade stainless appliances. Wood floor. If you love cooking you will be in heaven. If you don’t enjoy cooking, you may find inspiration in this beautiful kitchen.

One bath is on the main level of the home and the other in the finished lower level. Both have been completely modernized. Note the beautiful patterned tile floor in the main level bath. It’s all here. The 4th bedroom, a family room with another fireplace, a home office and a full bathroom. Perfect for the family teenager of visiting family and friends. At the rear of the home is an enclosed porch that looks out over the lovely expanse of yard. It has the feel of a Northwoods cabin. The built-in snack bar is a thoughtful...

Fall Home Buying Rewards

Fall Home Buying Season

Top Mpls MN Realtor on Buying a Home in the Fall

With summer in the rearview mirror, the fall home buying season is in full swing. As we move into the last quarter of the year, many disappointed summer home shoppers wonder if they should suspend their search to renew efforts in the spring.

As you ponder the question, you should take into consideration that the fall home buying season has some distinct advantages. Instead of taking a break, you may want to stay with the program and intensify your search for a home. Here are some of the perks and rewards you can expect if you decide to stay engaged in the hunt for a home.

Fall Home Buying Means Less Competition

Like most markets, real estate has seasonal adjustments. Fall home buying season is generally less busy than the spring and summer markets. The “must buy a home before school starts” mentality is one reason. Another is that some people do not want to move in the winter months.

Those who have no school-age kiddos or are more flexible about their moving timetable can take advantage of that market slowdown. They will find less competition for homes and less chance of getting into a multiple offer minefield. Let’s face it, “I want to be in a bidding war,”...

November in the Twin Cities Cold While Housing Market Hot

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

Since the end of the year is staring us in the face we would...

Twin Cities May Housing Market Review

May Housing For the Twin Cities In Two Words – Extremely Competitive

The story for May housing in the Twin Cities is one we have told over and over for months. With the supply of inventory 17.3% lower than last year, it’s about a tale of heavy buyer demand and intense competition to secure a deal on a home. This extraordinary sales activity in the face of an extremely challenging playing field for buyers is continuing to fuel this market causing home values to rise and properties to close in record time. In addition, with the average sale price at 99.5% of ask, that means approximately 50% of homes are getting sold for list price or above. 

As is characteristic of any market where supply falls short of demand, home prices are rising. The median sales price for May was $250,000 up 5.5% over same time last year with the average sale price up 6.3% at $294,243. Strongest sales were in the below $250,000 category, making the market most especially difficult for first-time home buyers. The market segment with the strongest sales was townhomes. 

New listings for in the Twin Cities for May were up slightly by 0.7%, pending sales down 3.1% and inventory levels fell 17.3%.  The supply of homes for sale sat at 2.3 months down 20.7% compared to May 2016.  The bright spot on the supply side is new construction. Low borrowing rates and strong demand for housing is inspiring builders and inventory of new construction was up 9.1% for the month of May. 

Twin Cities Metro Housing Quick Stats

      • Given extraordinary demand and limited inventory, home prices...

Twin Cities February Housing Market - A Look at the Numbers

Twin Cities Home Sellers Doing the Happy Dance

Market snapshot: This is a very difficult market for buyers, especially in the lower price tiers as the theme of low inventory coupled with high demand endures. As inventory levels continue to shrink, it is becoming really tough to buy a home, especially for first-time buyers and downsizing boomers. Nevertheless, they persist.

So far, buyers, even faced with the shortage of available homes, rising prices and increased mortgage interest rates have not been deterred. Heading into spring, which is the strongest real estate season of the year, begs the question of how much inventory will we see in the market and will the increased cost of buying a home temper buyer demand. As long as job numbers and economic factors remain strong, buyer confidence should remain high and continue to fuel the demand for housing.

For the week ending March 11th and 18th, we see a decline in inventory and a decline in pending sales. This may be a signal that buyers are dropping out of the market but based on those 2 weeks statistics it is too early to say.  We are seeing a decline in the gap of new listings compared to last year as the month progresses so it may just be indicative of a more traditional onset of the spring market whereas last year it was acting like spring even though we were still slogging through the snow.  

Let’s take a deeper dive in the month of February 2017 real estate market stats in comparison to the same time last year. *

Quick Stats

  • Buyer activity outpacing...

5 Reasons To Sell Your Twin Cities Home Now

The 5 Reasons Twin Cities Home Sellers Should List Now 

Even though March is still very much a winter month in the Twin Cities, we had a few days of spring-like weather in February.  Those days may have been a teaser but I will tell what is no joke  – the spring home buying season started in January! Buyers are eagerly snatching up properties with wild abandon. If you are planning to sell your house this year, the earlier in the year you get your house on the market, the better.  This phenomenal seller's market is not going to last forever but right now it’s all about you and the question on my mind today is, what are you waiting for? 

1. Tenacious Buyers Will Not Be Here Forever

To say there are many eager buyers in the market watching the posting of new listings with a keen eye is an understatement.  Many have not just been anticipating home ownership for weeks, a great number of buyers have been looking for months. With so much competition for so little inventory, a large number of these buyers have attempted to secure a deal on a home only to lose out to another eager buyer.  They are not giving up anytime soon but market conditions such as rising interest rates may force them out. This sense of urgency is inspiring them to make great offers, very often above list price while making few demands.

2. The Anticipated Rise in Interest Rates Could Knockout A Sellers' Market

The market experienced an unanticipated spike in mortgage interest rates at the end of last year immediately following the presidential election.  Right now they bounce around...

Five Reasons The Minnesota Property Group Team is Extraordinary

TopTwin Cities Real Estate Agents

Real estate in MN is the story about homes and about the people and the families that live and love in them. It is also about the real estate professional helping a family sell or buy a home and whether it is their first home or their last, the agent has a golden opportunity to become a hero in their narrative. Here at the Minnesota Property Group, we have a few heroes! Talking about them, even bragging a little bit, is the favorite part of my job as the content creator.

Five uniquely talented professionals came together as a team with one common goal; providing the best service by treating each client like a member of your family. (This paid off in July 2016 with being recognized as "America's Best Real Estate Agents" by Real Trends, a designation given to less than 1% of agents and teams nationally.) We already heard from Joe Houghton, the RE/MAX Results agent that leads this team. He is the one prominent reason this group is the best. It is his vision and plan that moves the team forward and inspires them to grow and reach their full potential not only as individual agents but as part of the team.  The four other reasons this team is extraordinary are members, Derek Irving, Mike Milne, Andrew Klinkner and Paul Mcquire who make up the strength of this great team. Here are their stories. 

Mike Milne 

My real estate story is one of appreciation. This past year completed my third in real estate and by all accounting it was fantastic! Every transaction brings a new situation and challenge. This is the opportunity that allows me to evolve in this business. I’m inspired to learn and improve because I know this will result in better service for my next client as I help them with the purchase or sale of a home.

What I love most about my work is that each person I meet has their own unique story, and it is truly an honor to be part of their next chapter. Nothing feels better than knowing you are making...

Twin Cities Housing Market Stats December 2016 Review

Twin Cities Housing Market Statistics December 2016

Finally, here we are wrapping up the year for the Twin Cities Housing Market. As stories go this is one we have been retelling throughout 2016. It is a tale of a market dramatically in favor of sellers with more buyers chasing fewer properties as the year progressed.

Prices of homes continued an upward trend over December while days on market from list to close declined. Completed sales were up, pending sales and inventory were both down, and with the end of year months inventory of homes at 1.6, it was a true tale of woe for buyers heading into the new year.

How the Minneapolis-St. Paul Market Looks Short Term

Unemployment continues to be at all-time lows and job creation has remained steady and strong since August 2015. Moving forward, the perspective for the housing market remains unclear and depends a great deal on the new administration and the effects it will have on housing in the coming months. We do know that the quarter point reduction in FHA mortgage insurance was rescinded which will lock out about 40,000 first time home buyers and force those that will still qualify to seek lower priced homes. Mortgage interest rates have risen as well and now appear to be bouncing between 4.125 and 4.250 percent.

...

Twin Cities Housing Market November 2016 - Here's the Story

Twin Cities Housing Market Statistics November 2016

Here we are almost at year’s end and wrapping up on the Twin Cities Housing Market that tells one consistent story. It’s about fewer and fewer homes for sale spending a shorter time on the market and selling for higher prices.  A market that favors the seller has been the dominant theme throughout this year. A deeper dive into the numbers for November give us a clear picture of the market trend.

Prices of homes continue on an upward trajectory with a 5.8% increase in the median sales price over last year. Closed sales topped out at a 25.2% increase and inventory dropped a whopping 22.8%. Due to volatility in financial markets responding to the results of the presidential election, the long awaited increase in interest rates happened before the expected Fed increase of last week, which boosted the mortgage interest rate in the Twin Cities to 4.25% with the expectation that rates will continue their upward climb in 2017.

While employment numbers and job creation have remained strong since August 2015, the long-term indicators of what effect the new administration will have on the housing market remain someone cloudy. With a raise in rates, we might very likely see a decrease in first time home buyers that will be able to purchase a home, which may result in a more balanced market in the coming year.

 

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