What’s in store for the MN real estate market this fall?
How will this season’s changes impact you as a home buyer and seller? How will typical seasonal shifts be compounded by larger macro-economic cycles?
The Fall Real Estate Market
Summer is considered the peak home buying season across most of the US. Once we get into back to school season the housing market changes significantly. Parents have other priorities and expenses, and less free time. Most buyers and sellers have made their moves by the end of the summer.
So, in the fall, the housing market traditionally begins to fall. At least temporarily.......
There may be another flurry of real estate transactions around the end of the year. Though it is usually spring time before the market begins blossoming again.
What Makes This Year Unique?
This year, the normal seasonal rotations are also being compounded by the wider economy and housing cycle.
This includes rising interest rates, high inflation, and mass layoffs.
These factors can both be highly motivational and create a sense of urgency for many to act immediately, as well as causing others to freeze in fear.
The Fall Real Estate Market For Sellers
This cooling off of the housing market means that there are fewer active buyers in the market. Those that are still looking may have been beaten out to deals by more attractive homebuyers in the summer.
Fewer showings, and fewer offers mean that many home sellers get nervous. Home asking prices often see the most reductions around this time of year as sellers compete more furiously for attention with each other.
This may not feel great. Yet, trying to hold out for more might be counterproductive. Rising rates, and more layoffs could shrink your buyer pool even further, and cause your home’s likely selling price to continue to decline. At least into spring next year. If we hit a recession, it could be for much longer than that.
If you’ve been considering selling your property, or know that you need to in the near future, this is the moment to list your home for sale. You can’t afford to wait.
The Fall Real Estate Market For Buyers
What’s bad for sellers in the fall is great for home buyers.
Fewer competing buyers, and panicking sellers, and their agents, mean the best time for scoring the best house deals of the year.
This is not only true of home prices, but also the terms you can negotiate. You may need less of an earnest money deposit. You might be able to negotiate more items to be included in the sale, your preferred closing date, and even have the seller pitch in for more costs.
This opportunity may not last for long. As we approach Black Friday the market can begin to pick up. Or interest rates may be hiked again.
If you are considering buying, or are just tired of your landlord increasing your rent, this is the time to act.