What Today's Real Estate Hot Streak Means For You

Dated: August 6 2020

Views: 3114

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What Today's Real Estate Hot Streak Means For You

In most markets, for most products, a buyers' market is usually the opposite of a sellers' market. If a buyer wins and makes a really good deal, that implies that the sellers lose.

In residential real estate sales that is generally true also. In a buyers market, it is staged for the buyer to have the advantage, and the alternative is true in a sellers market. That is why good real estate professionals watch the most current market stats so closely, so that we can advise our clients in the best way possible. But right now we have a real estate market that has turned that theory on its head!

The sellers who choose to get into this market and sell, particularly residential homes under $500,000 are getting the highest price ever paid for homes. Obviously, that is very good for them. But buyers are also winning because interest rates are at their very lowest point in memory, sometimes under 3%. Buyers are most concerned about what their monthly payments are going to be. With the historical average fixed interest rate of about 7% , comparing that today with a 3% interest rate, there is a tremendous downward pressure created on payments.

The median home price in the 16 county Twin Cities Metro just topped $300,000. As an example, when considering a fixed interest rate on a 30 year mortgage, the monthly payment which is nearly $1000 less at 3% than 7%! Yes, you read that correctly - nearly $1,000 difference! If the $300,000 sold price paid dropped to the average we saw a few years ago of $250,000, the payment would only go down approximately $625 per month!

We truly have a win/win market in real estate. In my 36 years of experience, I have never seen such a market for consumers.These unprecedented times are truly something to take advantage of! This is an excellent time to sell, buy or both. If you need help analyzing your situation, please give us a call and we can help you with that analysis on a complimentary basis. Thanks for reading.

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Dave and Ann Feerhusen

"Experience you can trust!" I am very fortunate, along with my partner and wife, Ann, to have spent my career of 36+ years helping people successfully market their homes in the Twin Cities. We have ....

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What Today's Real Estate Hot Streak Means For You

What Today's Real Estate Hot Streak Means For YouIn most markets, for most products, a buyers' market is usually the opposite of a sellers' market. If a buyer wins and makes a really good deal, that

Read More