St Paul, MN: The latest report from the Minnesota Association of Realtors shows what we mortgage lenders already knew... That lower quality inventory is sparking higher prices across the state, but primarily in the Minneapolis / St Paul area.
The report for March showed the lowest number of homes currently on the market, at 11,784, since 2005. The report also shows the highest March average price for homes in four years, at $155,000 statewide.
The low inventory, combined with increased consumer confidence, and historically low mortgage rates, has created bidding wars on many properties, with the homes selling quickly, and ABOVE asking price. This goes against the grain of what many home buyers think, that they can still make low ball offer on homes. For the most part, low ball offers are a thing of the past.
More homes are expected to come on the market as we finally get some spring weather, but expect the fury of multiple offers on great, well priced homes to continue.