Twin Cities First Quarter Real Estate Market Report

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Things have been heating up in our marketplace for some time now and in a good way!  For months, in fact for several months in a row, we have been seeing a steady increase in our pending sales. Just this past month there was a significant 24% jump in pending sales from the previous month and it seems to be an indication of where we are headed.

Lowest Inventory Seen Since 2004

One of the most noteworthy happenings in our current market is the unprecedented few number of homes available on the market for purchase. We have known for some time now that sellers have been wary to list their homes given the plummeting values and unstable market. But during the past several years many markets, including ours, were witness to a fairly strong number of sales despite the volatile economy. Buyers have been quick to attempt finding their dream homes with the low cost of borrowing money, wiping out the homes in good condition in good locations. Another factor that impacts the current low level of houses to choose from is that banks’ shadow inventory has yet to hit the marketplace, lending to an even skimpier inventory on hand at the moment.

Sellers Beginning to Anticipate Changing Market

Now that things are beginning to shift in the sellers’ direction, many homeowners are sensing the benefits of listing their properties now while the demand is out there. In fact, now could not be a better time to list your home given that interest rates remain at an all time low and home prices are still attractive to buyers.

Sellers are currently enjoying multiple offer situations and have the ability to play several offers against each other. They are able to pick the best offer and do so without having to offer a long list of seller concessions. This added leverage is also making it easer than it has been in a long time for sellers to ask, expect and achieve higher sales prices on their properties.

Buyers Chasing the Clock Against a Bottomed Out Market

Though today’s buyers have been used to being in the driver’s seat for some time now, things are not going to be as they have been for much longer. There is no way to tell when a market has hit bottom until the prices start coming up again but a lot of industry speculation has it that prices (and interest rates) will begin to rise soon. Some markets, like Phoenix, have already begun to see a sharp increase in home values. Concurrently the interest rates are moving upward too.
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If you have been sitting on the fence about selling your home, now is the time to list it!  Before buyers begin to pull back for their turn to wait the market out, enjoy the attention (and multiple offers) and sell your home today!

If buying your dream home has been on your mind – you don’t want to miss out on today’s opportunity. Once those interest rates start climbing back up again, there is no telling how high they may go.

Call us today for a customized consultation so we can help fulfill your real estate goals! We look forward to the opportunity!