We’ve experienced quite a few years of a strong sellers market here in the Minneapolis/St. Paul metro area but the tides seem to be shifting back towards a balanced real estate market. We think that’s a good thing. What are we seeing to make us think a shift is coming? Well let me explain. We typically see a bit of a slow down in the fall and winter months but we’re seeing more and more listings than previous years and they’re staying on the market a little longer than a day. Buyers in the entry level price point where multiple offers and homes selling over list price can finally breathe because the listing inventory is rising which translates to more houses to choose from.
On the sellers side we’re seeing more and more price reductions on currently listed homes. This means that the price of homes isn’t growing as quickly as it had been, it’s balancing out, bringing us back to a balanced real estate market.
And finally interest rates are rising, they’re currently around 5% for a 30 year fixed loan and while this may feel high for some of us, this is still historically low. Unemployment is low and the economy is doing well so despite how you may feel when you hear the current interest rate this a normal and healthy practice.
So don’t panic when you hear about the market shifting because a balanced real estate market is not a bad thing, it’s just different from what we’re used to. Now really is a good time to buy and sell a home. We understand that there are pros and cons to every situation but if you’ve been considering making a move now may be a really good time for you to sit down and evaluate your goals and consider making that move sooner rather than later.