So… The median sales price in the Twin Cities is up 7.2% since last year and the days on market are down 17.9% to an astounding median of 23 days across the Twin Cities… Yet, we are noticing lots of price adjustments and concerned sellers in many areas around our metro area. What is going on?
Well, a couple of thoughts exist in these types of shifting markets. We could be experiencing a slight shift due to the time of year; we always see a little slow down in the fall market which makes it a slightly less stressful time to make a move. The other option? Perhaps we have hit the top and we require a correction. Now, I don’t have the crystal ball; however, a careful look at history as well as current statistics can shed a little light on what we are looking at into the future of our real estate market.
New listings in the Twin Cities hit a low point this April that we have not seen since April of 2014. Although we appear to be going in the right direction (up) where inventory is concerned currently, the builders are building at price points that first-time home buyers cannot generally afford.
So, where are the first-time home buyer homes? Well, the number of new listings priced lower than $190K are down 26.2% this year! The law of supply and demand says that with low inventory, prices go up, right? One factor that we need to remember, however, is affordability. If prices hit a point where it no longer makes sense for first-time homebuyers to buy, we will see a decline. Is it now or is it next year? I cannot say for certain. Looking back in time, we can see the numbers to support any hypothesis, and yet it sure looks like we are getting to the point where affordability will be an issue in our market.
For a deeper analysis on how YOUR home is affected by a shifting market, give us a call! Every property and every micro market is unique and we can help you understand what the best plan will be for your move. Happy to help!
Fall Real Estate Market Slow Down?
The rumors are true-As the Star Tribune recently reported, home sales in our local market have fallen for the last two months. Are we seeing a seasonal shift or a true shift in the market? Given what we know to be true about our local market as well as the real estate market in most areas, the fall does bring a different type of buyer and sometimes a bit of a “balancing act” to many segments of the market. How will this affect YOUR plans to make a move in 2017? Does this perceived slow down affect all homes in all areas and at all price points?
As I mentioned, the fall market often brings out a different type of buyer. Many are the patient buyers who were unable to secure a property during the stampede that often occurs in the spring market. Many of them are the “I don’t have to move, but I want to move” type that are just waiting for the right property at the right price, and they are willing to wait. That said, we also have the “we are about to have our third child and we don’t have enough bedrooms” buyers that are going to feel pressured to purchase this fall, as they have not yet found “the one,” and are certainly noting the lack of inventory that is still a problem in many areas and price points.
What about YOUR move? Is YOUR buyer out there this fall? Well, yes, I believe so! There is always a buyer for a home that is positioned well in the market (meaning staged, beautified and move in ready) and priced right (meaning within the range of being the best compared to your competition). Each price range and area has different competition this fall, and it is imperative that we dig into YOUR neighborhood, competition and home features before we decide if fall 2017 is your best time to sell. We have sold homes over $450,000 in a day or two, as well as homes around $200,000 in a weekend-positoned to sell and priced right. We can help you to evaluate your competition and readiness so that you can make the move you want when it makes the most sense to you. Give us a call to schedule your free prelisting consultation today, so we can help you plan your perfect move!
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