May 2022Twin Cities Real Estate Market Update
As the#1 Home-Selling Teamfor Coldwell Banker Realty in Minnesota since 2015, our powerful team has the experience and expertise to guide home buyers and home sellers in the Twin Cities Metro through any fluctuations in the real estate market. Check back every month for our updated Twin Cities Real Estate Market Update and what it means for you!
Welcome to May 2022! Time is flying and the real estate market has been going strong this spring. Since the Federal Reserve officially increased their interest rates by half a point on May 4, 2022, this means that the cost of borrowing will cost more than usual. As millennials enter the housing market, it is the driving force for higher sales prices and home shortages. According to MARS, home listings in the Twin Cities are still down – 4.8% from last year and inventory homes are down – 12.1%. The median sales price from $328,462 has increased by +11%, now at $353,000 compared to last year March 2021. Due to the low supply of homes and high demand in this seller’s market, we recommend you call us to help you through the whole process.
What does this mean for sellers?
It’s all about timing! As the school year comes to an end in June, families want a move-in ready home that they can settle into by summer to be well prepared before the fall. The earlier, the better is always recommended. Give yourself enough time to plan ahead and create an action plan in order to get the best ROI when selling your home. The real estate market has been better for sellers as families continue to search for that move-in ready home before school starts up again.
What does this mean for buyers?
It all depends on each homebuyer as everyone has a unique situation. That’s why you need an experienced team on your side as competition holds strong in this constant changing market. What kind of home are you looking for and in what neighborhood? What are your home must-haves and negotiables? These are the questions that we tackle on together as we narrow down your search to find that hidden gem.
As interest rates and home prices continue to increase nationwide, sometimes waiting could have its negatives. The average 30-year fixed mortgage rate is already at 5.55%, which is the highest rate it’s ever been since 2009. However, most homeowners won’t be too affected by this increase because 15-year and 30-year fixed mortgage rates are connected to Treasury yields and the economy. It might be high to buy now, but as the market normalizes, your investment and forever home will continue to appreciate in the future years to come. It just takes some time and patience, and we will help you get there!