Its cold outside, but the real estate market is still hot. Not all the numbers are in for an end of year report, but we have through the end of November showing indicators. Listings in Lynhurst were down year over year 13%. Last year were at a 30 year low, we’re now lower yet. Sales have to be lower if there was less to sell, down 7.4%. The average sale price is up from $282,829 to $302,517, a whopping 7% increase!!
One thing data never addresses is WHY? Other neighborhoods experienced strong gains in price in 2018, overall pricing was up 6.5%, which is still phenomenal. Data tells us that we are staying in our homes 10 years instead of 5. Surprise, we had a Recession. Not everyone recovered. Even if sellers walk away with a profit, they aren’t confident that they can afford their next dream home. Or, they’re concerned that they’ll have to invest too much to sell at their price.
The consensus is that it is a seller’s market. Buyers were lining up even before the New Year to snag a win, and we are already in multiple offers. This year’s group of buyers is prepared, and savvy. Throughout the fall I watched as new listings came on. I’d average that for every 50 listings new on the market, 20 showed price reductions. That indicates that there were lots of overpriced and unprepared homes for sale. Those of us who have seen this movie before needs to educate sellers that pricing is more than a dart game. There’s no such thing as an accurate online evaluation. Data mongers haven’t been inside your home, don’t know that you remodeled the kitchen (or not), built an addition, or that the garage burned down. The magical algorithm is based on past sales, square footage, and number of bedrooms. Two homes with identical data can be very different. It is always a beauty pageant and a price war. Gotta win both.
The silver lining this year is that consumer confidence is high, unemployment was 3% in October, rental vacancy rates are about 2.5%, and rents keep rising. In a few short years rents for a two bedroom apartment in Minneapolis went from $850 to the current average of $1200 a month. It is more affordable to buy than to rent. Lenders are already swamped with loan applications for buyers, interest rates hover just above 4%. The spring market usually starts early March, but it looks like we’re already marching. What that means for you is that your home is appreciating, and if you have any thoughts of selling, now is the time to get prepared.
I’m inviting you to give me a jingle, shoot me an email or text that you’re interested in checking the current market value of your home, and how to get the most for it. If you are selling, you will also be deciding your next step. That’s takes some research, and planning. Moving is always life changing, and I’ve been helping families through the process for over 20 years. Please check out my website; www.raiseurroofmn.com and/or my Zillow profile for reviews.
Hope to hear from you soon, let’s have coffee. On me.