August 2022-Are Prices Coming
The question that everyone is asking, as our interest rates rise: "Will prices come down? Have they come down already?" A loaded question, indeed! Well, the answer is, of course, "yes and no."
According to our local stats, pulled from Northstar MLS, June of 2022 records the median sales price to be just about equal to that of May 2022, which was up slightly from the month before. But what does median (or a average, for that matter) sales price across the whole Twin Cities tell us, really? Well, not much.
As a local professional, I always turn to a more micro-market approach when identifying trends in pricing, as real estate is what we would call, "hyper-local." One neighborhood may stay steady while others decline or even increase as interest rates change. Price ranges and property types will vary where these dynamics are concerned, as well. Have I noticed a decrease in price on specific property types in specific areas on specific days? Yes. Do I consider this to be the trend overall? Yes, no and maybe.
Often times, we find that prices continue to climb as interest rates begin to rise. Buyers who were formerly on the sidelines will often jump into the market to make their move before rates go any higher. Considering our inventory shortage, which is still very real, I do believe that though prices may ease in their rapid climb, we will still see them continuing to move upward in many of our micro-markets. Pricing is both an art and a science, and a deeper analysis of each unique situation is required now more than ever.
If you would like to know how your home will fare as you consider your upcoming move, give me a call and I can share a hyper-local perspective that takes into account all of the dynamics we are currently experiencing in our local market. I am always happy to help! -Angela
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