Here’s what you can do to combat the imbalance in our real estate market.
It’s time for another Twin Cities real estate market update. As we’re sure you’ve been hearing, the market is at an imbalance both locally and nationally. There is much higher buyer demand than available supply. In many areas, the average home price is up 20% in just one year. That kind of appreciation usually takes a decade to occur.
Much of the supply issue stems from the lack of new home construction over the last decade. Additionally, record-low interest rates have spurred demand. We are starting to see interest rates rise, and we expect to see this trend continue over the next year or two.
If you’re a buyer in this market, you need to be fully prepared. With inventory at record-low levels, you may be competing against multiple bidders for a home. It’s more important than ever to partner up with an experienced agent who knows the market and a local lender who can get you the best rate and fully underwrite your loan before you start shopping.
If you’re thinking of selling, this spring may be one of the last strong seller’s markets we’ve seen for quite some time. There has been over a decade of strong price appreciation, and we expect that buyers will pull out as rates increase.
If you have any questions about the market or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.
