What’s happening in the Minnesota real estate market now? What can you expect ahead? How will it impact you as a home buyer, seller, or property investor?
MN Real Estate Stats
There are many ways to measure and calculate various metrics in the housing market. Here are some of the notable numbers worth knowing right now.
- Average days on market: 18
- Volume of homes being sold: -25.6%
- Number of home listings for sale: -9.14
- Median home sales price: $341,700
What it means: fewer homes are being sold, though there are also fewer homes for sale. Correctly priced homes are still selling extremely quickly.
Diverging Market Directions
All real estate is local. All real estate is relevant at a personal financial level. What is extremely interesting right now is not only the diverse positions that home buyers and sellers are in, but how diverse different pockets of the market are.
Consider that some sources claim overall home sales prices in MN have fallen 2.2% this year. Zillow states that they are actually up by 0.4%. With 38.5% of listings selling for more than the asking price. They also predict prices will rise modestly over the year.
Even the most pessimistic data sources show that while they believe the overall market is down, that some metro areas are realizing over 20% increases in home prices.
While there is certainly also some distress in the market due to hyperinflation and a shaky economy, featuring massive layoffs and widespread hiring freezes, Minneapolis Area Realtors report that short sales represent just 0.2% of the market. While they’ve risen by 33%, that’s really just 12 homes. Mostly concentrated in the lower end of the housing market.
Factors Impacting The Market This Year
The last couple of years have taught us that while real estate has predictable cycles, there are also plenty of wild cards that can impact and stretch or contract these cycles as well.
Among the factors that may influence the MN housing market this year include:
- Traditional seasonal fluctuations in activity
- The boom and bust of AI being injected into everything
- The mayhem in the run up to the next presidential election
- Rising interest rates
- Bank failures
The Outlook For MN Real Estate
In spite of short and medium term turmoil and uncertainty, we can expect the MN property market to rebound and continue to rise over the long run.
What It All Means
Rising interest rates are your nemesis. They will impact your true home cost more than anything else. So, don’t wait. Buy now.
Rising rates will eliminate a lot of buyers. If you don’t want to gamble on the direction of the market, list and sell before you are kicking yourself for missing the opportunity.
Banks are fearful, while loan officers are hungry to make more loans. If you are a strong buyer, financing is available. With far less competition from buyers using financing, cash investors can find incredible deals.