27 Nov Real Estate Market November 27th Minnesota
Real Estate Market November 27th Minnesota
This is our MN real estate weekly update for November 27th, 2021. We can feel the chill in the air and with Thanksgiving now finished we are at the door of winter. We will continue to lose daylight until winter solstice on December 21st. Coronavirus concerns are still here. The real estate industry is closely watching the Delta plus variant and the level of spreading in Minnesota as people spend less time outdoors and more time inside during this winter season.
We review real estate facts and future trends
We have reached a more neutral real estate market at this time. A neutral market means that it is neither a buyer’s nor a seller’s market. We have price ranges and many areas that generate multiple offers (like first time home buyers’ homes), but most are seeing a normal real estate market with longer marketing times for listings. Our inventory of homes is slightly less than last year. So, what does that mean? That you should strongly consider working with an experienced real estate agent. Experience is priceless and gives you an advantage in the real estate transaction.
Here are facts of our current Minnesota real estate market. Our current housing affordability Index for MN real estate is 130, and this compares to 146 this same time last year (October numbers). The higher the number means the greater home buying affordability in the Twin Cities. Our current inventory of available homes for sale is 7,466. In comparison, we had 8,709 in 2020. So, the inventory of homes for sale is down 14.3 % from last year. This number has been mostly decreasing since the start of the year. A point of interest, in 2009 at the time of the real estate market correction, we had over 36,000 homes for sale in the Minneapolis/Saint Paul metro area. Lastly, the Minnesota real estate pending sales for the week before last, which have sold but not yet closed, was 1,173. That compares to 1,144 pending home sales last year (during the middle of the pandemic). That is an increase of 2.5 % from the same week last year. So, 19 of the last 23 weeks that number has decreased compared to last year. Our pending sales are now generally decreasing, and our inventory of homes is steady or slightly increasing. Our monthly supply of homes is 1.4 month compared to 1.7 last year (October figures).
Minnesota seller’s benefit financially when real estate values rise. The median sales price (September numbers) increased by 7.9% since this time last year. $340,000 is now the median sales price in the Twin Cities area. A market health indicator is the comparison of our sales price to original list price. For October, the average sale to list price was 100.3%. And that compares to 100.5% in 2020. This number will continue to go down when November numbers come in. For even more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. It features a comprehensive review of our Minnesota real estate market for those that like all the data!
Our current interest rates in the Twin Cities
The low interest rates we have seen in the last few years has increased the buying power for buyers. It has also helped sellers get higher prices when they sell their home. Mortgage companies like to provide mortgages to Minnesota home buyers because of our low delinquency and unemployment rates and this results in lower mortgage risk to lenders for Minnesota real estate mortgages. So, we are blessed with some of the best home mortgage rates in all the United States. Rates are up substantially since last week and the trend is rates rising in the future. Rates for borrower paid lender fees are 2.199% for VA, 2.199% for FHA and 2.874% for conventional. Rates for lender paid closing costs are 2.777% for VA, 2.969 for FHA and 3.411% for conventional. Just reach out to me if you need contact information of a lender with those interest rates.
My opinion of the future of Minnesota real estate
In the last 30 years I have seen many real estate markets, but this last couple of years has been one of the most unusual. Now our desire to have normalcy will boost our economy, but shortage of workers and product delivered to our country and stores will limit our growth. I predict this winter will be a more sensible Minnesota real estate market as inventory begins to meet demand.
This is a good time to discuss your housing needs for 2021 and 2022!
Your house and your neighborhood Minnesota real estate market
We find that each price range and neighborhood have its own specific trends and facts. In so if you are interested in knowing the specifics for your home…Contact Jeff Today.