What is happening in the Twin Cities real estate market in May 2019? Check out the stats on where we’re at and what it means to you this month.
0 Comments
We have lots of clients calling us this month to ask us about timing their move from their starter home to a more spacious abode. Here are some of the points we are discussing, as we advise based on current market conditions:
So… do you happen to know a friend or family member, maybe a son or a daughter, who is looking to be a homeowner AND investor? As we know, real estate investment properties represent an amazing opportunity to create passive income. Yet, this opportunity once seemed unreachable for those who were just starting out or those who don’t have a 25% down payment. I am here to tell you: “opportunity knocks!” Did you know that there are loan programs that allow owner-occupied buyers to purchase a duplex for as low as 3% down? A triplex or 4-plex for 5% down? What an incredible way to jump into homeownership! This option allows buyers to live in one unit and collect rent on the rest, thereby significantly offsetting the total cost of ownership. Who do you know that might benefit from learning about this type of opportunity? Just a note; there are income restrictions on these programs, as they are meant to help those who are not (yet) millionaire investors. We are looking for newbies that are interested in investing by “dipping a toe” before taking any leaps into single unit investing. It never hurts to inquire, so call us today and we can help you figure out if this is the right opportunity for you! Many of our clients are calling us early this year, as they are getting the “itch” to get moving on moving (did you get that?). Good move! As we start a new year and look at some of the changes in our market, I have been encouraging our clients to start planning now, so we can make sure they are educated and that they have a plan in place for that moment when they finally realize-It IS Time! So, what is going on in the market and how does it affect you? As you have likely noticed, interest rates have crept up slightly from last year, and are hovering around that 5% mark. This is still being regulated by the Fed slightly, and we really should be up closer to around 6%. Will 6% happen this year? No one can say for certain, yet I would say that if you know your move is inevitable, we should get together and start planning sooner than later, as a 1% rate hike can certainly affect affordability in every price range (unless you have cash, of course!). What about inventory? Well, as we look at our stats that wrapped up 2018, we notice a few things. First off, our months supply is still a lowly 2.1 months of inventory overall. This is down 8.7% from the previous year. Remember, a balanced market is around 6 months of inventory, so it is still a great time for sellers. Never fear, buyers! We are seeing more inventory, in most of our price ranges and areas, coming onto the market this winter. We should see more houses for you to choose from, if you are looking to make a move. Homes for sale is slightly down overall, yet in some of our mid to higher price ranges (think $300,000 and up), we have seen a 10.5% increase in listings. Good news, as this market shifts into 2019. Overall, we are noticing a slight shift in the market, yet the outlook for 2019 is a positive one for those with a move on their radar. Every area within the Twin Cities is slightly different where these trends are concerned, so if you would like a more in depth look at YOUR area, we would love to share it with you. Give a call, shoot us a text or an email and we would be happy to spend some time with you discovering the best strategy around your plans this year! Christmas time can be busy and full of frantic shopping, party planning and just plain “too much to do and not enough time to do it!” Well, if your shopping this year includes shopping for houses or shopping for staging ideas to prepare your house for sale, we have got a gift for YOU!
We has tons of resources right here on our website for you to get expert advice on nearly every step of selling and buying homes. You can watch our videos and shop for homes from the comfort of your coziest sofa right at home! Here are just some of the topics you will find: Sellers:
Also, you have the great opportunity of being our best ambassadors-YOU have friends who are planning to make a move in 2019. Would these resources help them? Are they looking for an expert team of Realtors to help? Sent them a text that says SadatSells.com and get them connected. We appreciate your connections and we can’t thank you enough for your referrals and your support! Merry Christmas to YOU! I was recently in a class that centered on mindset and personal growth, and we go onto the topic of Gratitude. Did you know that studies have been done on gratitude and how it affects a person in their daily life? One study actually found that if you write down 5 things you are grateful every morning when you wake up, that your brain will start to naturally scan the world for things to be grateful for?
A couple of examples:
Considering the craziness all around us, and the busyness of life, we can all benefit from scanning the world for ways to be grateful. If you made those calls (I hope you did!), I am sure you are feeling the “warm and fuzzy” of what you thought might be an awkward conversation that perhaps ended in happy tears or heartwarming conversations around gratitude. Blessings to you this holiday season; I am grateful for YOU! 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!
The Keg and Case Market in Saint Paul, MN is open! Join us as we eat our way through the renovated Schmidt Brewery!
We meet with clients who have all kinds of needs each season and one of the greatest needs they share with us is to understand the extent to which they need to prepare their home for listing. We often meet them months or even years before they actually plan to make a move. This has been a great opportunity, as we do believe that a picture perfect listing is not only guaranteed to sell, but it also sells for more money than the average “unprepped” listing. As the Market has turned toward favoring sellers, many agents are suggesting that sellers “just list it.” Though there are instances where the “just list it” method is employed, here is a short story that tells another perspective. John and Jenny* were looking to make a move across town and they hired a local Realtor who seemed to sell a lot of property in the area. The Realtor came and evaluated the property, told them to just get it onto the market quickly, staging and details don’t matter… 30+ days later and no offer, not even many showings… John and Jenny are dismayed and wondering what they’d done wrong? They decided they wanted a change in representation and after several interviews, chose The Angela Sadat Group for their fresh perspective and team approach. Angela, her stager, handyman and the rest of the team got together and helped with suggestions and staging “on the spot” which led to a successful sale and closing just a few weeks later. The details mattered! Just a few small tweaks can help your home to sell more quickly and for more money than the average listing. These preparatory steps can actually mean the difference between selling and not selling in certain sections of the market. Call us today and let us help you to win at the highest level in this market and put more dollars toward your next home-we’ll make it easy for you and promise smiles all around at closing! (*Names changed for privacy)
Come join us as we try some of the new foods, as well as some old favorites at the Minnesota State Fair.
|
Welcome!Welcome to our blog. We hope to be able to provide you with some valuable resources about selling and buying a home in the Twin Cities. We may also include a favorite recipe of ours from time to time, so check back often. Archives
February 2024
Categories
All
|