It’s no secret that the housing market has been struggling over the past year. Home prices have fallen by about 5%, and many people are wondering if now is the time to buy. However, even though prices may be dropping, they’re still relatively high at an average sale price of $300,000. That’s on par with the current national average across the country, and it’s not slowing down as much as consumers had hoped. So what does this mean for potential homebuyers in the Minneapolis real estate market? Let’s take a closer look at Minneapolis’s housing market trends to see what the future might hold.
A Brief Overview of the Minneapolis Housing Market Over the Past Year
The Minneapolis housing market has had an interesting year. Despite a slight decrease in home prices of around 5% to an average house sale price of $300,000, the Twin Cities area still has one of the highest housing markets in the country. In fact, the national average in housing markets across the country has risen and sustained over the past year. Supply is hard to find in the Minneapolis housing market, which drives competition among buyers that subsequently leads to higher pricing all across the Twin Cities.
It’s projected that the current state of the Twin Cities housing market will continue for at least another 12-18 months with not much significant change. The median home value is not expected to fall too much, and interest rates are projected to keep rising slowly. Real estate investing is also slowed at the moment. The sale of homes to be used as rental property investment is not at the rate it was a few years ago, and the rental market still continues to see very high rent prices. A balanced market seems far off, but drastic sways haven’t been made.
As of late, we’ve seen a trend of people choosing to stay in their homes and renovate and pushing off selling until sometime in the future. The apparent driving factor for this trend is the looming economic instability in the US. It’s also supported by continued inflation, rising mortgage rates, and political discord throughout the country. It has a similar feel to the calm before the storm, except no one knows how bad the storm will be.
The Percentage of Homes That Have Sold Below Asking Price
Over the past year, an interesting trend has emerged in the Twin Cities housing market: a growing percentage of homes sell below the asking price. As overall home prices have decreased, more homes are selling for less than listed initially. This trend is most apparent in certain areas of the Twin Cities area, particularly those with higher-priced homes. It appears sellers have to be more flexible with their asking prices or risk not having their property close at all. As prospective buyers look for ways to save money on their purchases, this could be useful for them going forward.
The Number of Days on the Market for Houses in Minneapolis
Recent trends in the Minneapolis real estate market show an increase in the number of days that houses remain on the market. Homes can spend anywhere from 15 days to as much as 120+ days for sale, depending on the specific location and price point. On average, they spend about 50 days on the market, slightly up from last year, which saw the average at around 45 days.
Generally, this trend can be seen most notably in areas with higher prices and denser populations, such as downtown and uptown districts, wherein more traffic of interested buyers exists. This data serves as an important tool for both buyers and sellers when considering making a move into or out of the city of Minneapolis.
Tips for Selling Your Home in Minneapolis
Selling a home in Minneapolis can be daunting, especially if you are unfamiliar with the local Minneapolis real estate market. Preparing for a sale well in advance is key to success, so make sure to do your homework and research viable options.
Start by becoming familiar with local pricing patterns to understand what prospective buyers are willing to pay. If you want to know how much your home could fetch in today’s Minnesota real estate market, get a free online home analysis from Minnesota’s most trusted real estate expert, TheMLSonline.
You should also review data on recent sales so that your pricing strategy is accurate and effective. Staging and updating home features are also huge factors when attracting potential buyers. It’s essential to highlight why your home stands out amongst others on the market.
Last but not least, hiring reliable Minneapolis area realtors can often provide invaluable assistance throughout the process to ensure you get the best deal for your home. So if you’re considering selling your home in Minneapolis, be sure to keep these tips in mind!
Is the Minneapolis Housing Market Forecast in Your Favor?
The Minneapolis housing market has seen a notable movement over the past year. Prices remain at all-time highs, and buyers remain cautious, but homes marketed correctly can still command top dollar. Knowing how to price your home right, attract potential buyers, and negotiate a good deal can make a world of difference in selling your home. Homeowners preparing to list should arm themselves with knowledge of the local real estate trends to enter the market as informed sellers and maximize their return on investment.
Whether you’re looking for a starter home or an executive rental, there are plenty of opportunities for savvy property owners in Minneapolis. If you’re looking for market news or tips on how to get your home sale-ready, keep up with Real News on TheMLSonline, your premier Twin Cities real estate resource.