Someone once said that the only constant in life is change. That is particularly true in real estate. It is one of the things that really intrigues me and keeps me so engaged in this business.
Times Are Achangin
Someone once said that the only constant in life is change. That is particularly true in real estate. It is one of the things that really intrigues me and keeps me so engaged in this business. Seldom are two homes the same, two days are the same nor are the needs of any two consumers the same. Monatany is never a problem in this profession. For the six years since 2012 we have seen continual home price increases, a shrinking number of new listings and a corresponding decrease in the total number of homes for sale in the Minneapolis and St. Paul market. It has created a strong seller's market with homes under $350,000, often having multiple offers and a number of them selling over full price. The challenge then was to get past the appraisal process to finance them at the highest level. This has been frustrating for buyers trying to tie down thier first home particularly. Well since October that trend is starting to turn around. Granted it is a very small amount of a change and it remains a seller's market. In a "normal" year we would see about 20,000 homes for sale in the 13 county metro market. Last Spring we had only 7500 homes for sale. But the trend is now more new listings on a year over year basis and fewer new closings, so we are starting to see a rise in inventory. I believe that we could see an inventory of 10,000 homes for sale or more this Spring. This may be a very good time for buyers to get back in the market as thier selection is improving. If this trend continues I think we will see the inventory increasing in a somewhat significant manner. While I don't predict that it will become a buyer's market, I do believe that it could become more balanced. This is a good thing for both buyers and sellers because it will create a more sustainable market. There have been concerns among economists that it could be overheating. Anyway, on my web site, MnHomesbyDave.com I have a great recent article from Rismedia, a professional news source for Realtors, regarding this phenomenon. It is under the Real Estate News tab. Also, if you are interested in seeing our current local statistics you can hit on the Market Update tab there also. Thanks for reading.
"When Time and Money Matter, So Do Knowledge and Experience!" I am very fortunate, along with my partner and wife, Ann, to have spent my career of 30+ years helping people successfully market their....
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