Thinking About Selling? Do It Now - Here's Why
Selling Homes in the Twin Cities Area of Minnesota
The spring and summer housing market is behind us, but as we look in the rearview mirror and wave good-bye, we should also look ahead and say hello to the second best season for home sales, fall. If you thought about putting your house on the market but somehow didn’t manage to pull it all together as yet, here is your second chance as a seller to take advantage of this market leaning so heavily in your favor here in the Twin Cities.
Generally speaking under normal conditions the seasonal adjustment of the cooler months and inventory, prices and market activity seem to follow the downward trend of the temperatures. This may not be the case this year. While inventory levels, days on market, and pending sales are declining, median sale prices are continuing to rise.
Twin Cities Metro Market Data Still Strongly Favors Sellers
The Minneapolis Association of Realtors report for the week ending September 10th when comparing to the same time last year, inventory decreased 17.4% to 14,011 and pending sales decreased 2% to 954. Looking at the data for the month of August fleshes out the market’s story: Month’s supply of homes decreased 24.3%, days on market decreased 14.1% while list price received increased by .8% and the median sales price increased by 5.6%.
Many buyers that either didn’t find what they wanted or were not successful in getting an accepted offer are still eager to buy and the inventory of available homes tightens even more. It’s an excellent time to be a seller, especially if your home falls into the first time home buyer price range. Still need convincing? Consider the following.
The Interest Rate Game
Right now for strong qualified buyers, the mortgage interest rate is below 4% for a 30-year conventional loan and below 3% for a 15-year loan. We have been expecting a rise in interest rates for a couple of years now. However, when the Federal Reserve Board met in September they voted to keep interest rates at their current level. If the economy continues to improve and there are no surprises that would have an effect on the rate it may be going up in December. Buyers are following this closely and feeling very motivated to secure a mortgage before that increase.
Twin Cities Rents Continue Rising
While the interest rate remains low this is not the case with rents. The National Apartment Report for September, published by ABODO, reported that leases for comparable apartments rose 4% in Minneapolis. Potential first-time buyers are feeling the pinch and when they consider the fact that they can own a home of their own for the same amount or even less than they are currently forking over to their landlord every month, home ownership is very appealing.
The Twin Cities Winter Looms
Buyers showed their mettle last winter proving they were so eager to become homeowners that they did not let a little thing like ice and snow inhibit them. But still, many are reluctant to make a move in Minnesota’s harshest season. Also many want to be in their new home for the December winter holidays. Although the beginning of 2016 showed a far more active real estate market than we are accustomed to seeing, we have no idea if this year will be a duplication in light of the possible increase in the interest rate. So if you a seller that wants to feel more certain of market reaction now is your moment.
Squirrel Away Some Tax Savings
Another motivation for first time home buyers is lowering their income taxes. Closing on a house before the end of the year, as opposed to the beginning, will give them the tax benefit of deducting mortgage interest and real estate taxes. Any points that you paid to secure the loan may also be tax deductible providing they meet certain criteria such as on a mortgage for your main residence. More information is available in this great post by Bank Rate, but for the most accurate information for your particular situation, you should consult with your tax specialist or attorney.
Faster Sales = Less Stress
As many of us know selling your home can be stressful for many families. It means keeping your living space neat and tidy at all times and adjusting your schedule at the last moment for showings. The Minneapolis Association of Realtors (MAR) monthly indicators for August reported that days on the market were down 14.1 percent to 55 days. That means from first listing day to closing. Properties in the $190,001 to $250,000 range were at 52 days on the market! A home that presents well and is priced competitively generally has an offer within days, and it is not uncommon to have one open house on the first weekend and have an accepted offer by Monday.
Home Values Are Still Going Up in The Twin Cities
So we have talked about how quickly homes are selling but what about the prices? Values continue to head upward. Looking at the MAR August Housing Supply Overview, we find the median sales price for homes sold increased 5.7 percent to $237,750 over the same time last year. Sales prices were 97.9% of original asking price up 0.08%. Not only did homes sell quickly at increased prices, but it was not uncommon for sellers to receive full price offers or better.
Fall Beckons Hearth and Home
For many people, summer is the season for vacations, weekend excursions, day trips, playing outdoors and relaxing rather than buying a home, packing and then unpacking. The cooler temperatures of fall make the thought of moving much more favorable. What else? Autumn beckons us to come inside and warm ourselves by the fire with a cup of spiced cider. Fall colors are warm and inviting and coupled with the smells associated with pumpkin and spice add to the season as a delight to the senses. This colorful time between summer and winter provides so much inspiration for showing a home's advantages. Our beautiful tree filled landscape does its part to add to the natural beauty of the season and to your curb appeal without you having to lift a finger to help. So what better time for buyers to find a warm and beautiful home of their own and for you to accommodate them than the fall?
Property values continue to rise and interest rates are historically low for now. The Twin Cities economy continues to delight us in so many ways. Our unemployment rate is the second lowest among America’s metropolitan areas generating an atmosphere that inspires economic growth and consumer confidence. So if you have been putting off that decision to list your home why not do it now?