Minnesota Real Estate: Spring Market Update
At Desrochers Realty Group, we’re gearing up for one of the busiest months in real estate and offering our take on the Minnesota housing market for spring and summer of 2018.
High demand, low inventory.
You’ve likely heard the news and it’s true, sales are down this year when compared to years past, but it’s not because the market is slow! Back to Econ 101, it’s a simple problem of supply and demand. There are a ton of buyers and not enough inventory. In fact, we’re at a 15-year inventory low. The hardest hit areas are close to the city suburbs like Edina, Minnetonka, St. Louis Park as well as South Minneapolis. Starter homes continue to see strong interest as competition for lower price range homes stays strong.
What does this mean for summer?
Summer is going to be busy. The colder than average temps that invaded Minnesota spring means many people are just getting around to putting their houses on the market. We expect to see a rise in the number of homes hitting the market.
What does this mean for buyers?
Buyers need to be aggressive. If you’re eyeing one of the hottest in demand locations, you may have to pay a little more to get what you want. However, given the predictions of rising interest rates in the years to come, you’ll be paying a higher mortgage interest if you wait. If your plan is to stay in a house for 10-15 years, it’s still a good deal to buy now.
Be strategic. Offer strategy will be key to your success, and this is where having a seasoned realtor becomes extremely important. We have hundreds of stories where the how and why we made offers for our clients sealed the deal to a successful buy. Even if it means you have to FaceTime in.
Be fast. Properties are moving fast, in certain markets selling in a few days. Make sure you have a plan for how you can view properties as soon as they hit the market so you can act quickly.
Be patient. You will find a house. You really will. Even if you’re looking in a price range with homes demanding multiple offers, there will be something that comes along. Trust the process.
What does this mean for sellers?
If you are listing your home, work with your realtor ahead of time to understand what you should prepare to get the best price. We’re seeing for certain properties it makes sense to spend a little more to make updates before hitting the market, as buyers in this environment are willing to stretch their budget to get something move in ready.
All-in-all, the season is shaping up to be a good one for buyers and sellers alike. Mortgage rates are still a good deal compared to historic averages, and our economy continues to be strong.
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