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Will a Twin Cities Resident's Buying Power Go Down in the Near Future

By
Real Estate Agent with Keller Williams Premier Realty 40213101

Let's say that the Twin Cities home prices flatline for the next year. That is fairly unlikely, but it could happen. Let's take a look at the average sales price in the Twin Cities right now.

The good news is that it's up 12% since last year! Now if prices do not go up a bit, but the rates do what is projected to happen, let's see how that affects a buyer in the Twin Cities, should they wait to buy one year. First here is the projection on what is going to happen to rates in the near future:

Now let's use a nice easy number of $250K for a home in the Twin Cities. What happens if this comes true a year from now?

Our Twin Cities buyers who are on the fence, should not wait to buy a home if they are thinking of making a move in the next year and financing the purchase. Over the course of the loan, this could cost them thousands!