If you are thinking of listing your home you better hurry! The Spring market is here I am seeing showings on all my listings. Want more proof last week I received offers on 2 of my listings and one was listed for only 12 days! The interest rates are still awesome! Here is the market update courtesy of my Broker Edina Realty.
| Market Update > As of Feb. 1 |
The Twin Cities and surrounding areas have seen a soft start to the year with real estate activity expected to build in the coming months. As was indicated last month, we anticipate a spring increase in property listings and more activity in open houses due to pent up demand among buyers. There are great home affordability opportunities for buyers, particularly in homes priced under $120,000, which saw a 39 percent increase in sales last year, and in the $120,000 - $150,000 range, which saw a 4 percent increase.* Lenders and elected officials have been working together with consumers and REALTORs® towards finding solutions for consumers in danger of foreclosure, and we anticipate lenders moving faster to process foreclosed properties in the coming year to free up even more opportunities for buyers.
Since mortgage rates have improved a full 1 percent on conventional and FHA loans since September, the principal and interest payment has decreased in real dollars by 10 percent. That means home-buyers can afford nearly 10 percent more house this year than last year, or they can expect their house payment to be nearly 10 percent less than last Sept. |
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New construction continues to exhibit positive signs of recovery with builders employing creative solutions including property auctions along with very competitive pricing. We expect to see some national builders leave our market in the coming 12 - 18 months, which will also help control inventory levels.
Properties in upper price brackets are remaining on the market longer, but competitive pricing and staging continue to result in elevated interest among potential buyers in all price brackets.
Remember, most sellers are also buyers with an opportunity to take advantage of a great selection of inventory, exceptional affordability levels and great mortgage rates. And, in addition to providing shelter and a place to create memories with our families, homeownership is a good financial decision. For the past decade, home price appreciation in the Twin Cities area has averaged 8 percent each year, reaching a peak of 12 percent in 2001.*
*According to data from the Minneapolis Area Association of REALTORs® (MAAR). |
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