If you’re thinking about moving to Minnesota here’s the May Minnesota real estate market report to help you make a great home choice. One of the most important things to note about the current Minnesota real estate market is that buyers are getting their offers accepted usually without having to make too many offers.
According to our local friends at Home Free TC they’re seeing 27% fewer offers with 2% of those offers getting accepted. That’s a shift in the market, but it’s actually a positive sign for buyers. Moving to Minnesota and buying a home in Minnesota is going to be a little easier right now because there aren’t as many offers on the homes that do come on the market.
Andover,MN
Interest Rates
You may have heard a lot about interest rates in the last couple of months because there’s been a lot of talk about interest rates going up to try and control the inflation that is affecting everyone right now. Interest rates have gone up a little, and they’re poised to go up more. So if you’ve been thinking about selling your home to upgrade to a larger or more updated home or if you’re buying a home for the first time it’s better to buy now before the interest rate goes up again.
For most of the last decade the interest rate on a 30 year fixed mortgage has been pretty stable sitting between 2.5 and 5%. The interest rate rose to 5.3% but now is back down a little to 5.1%. However, that rate is going to go up within the next year most likely. So don’t put off purchasing a new home or you could get stuck paying a much higher interest rate on your mortgage.
Minnesota Real Estate Price Points
There’s been a bit of an increase in the average price of a single family home in Minnesota from March to April. The median sales price of a home on the market in the Twin Cities are increased about $16,000. That might sound like a big jump, but in the current market it’s really not a huge increase. And it’s normal for prices to go up as the summer sales season starts. Typically the busiest time of the year for home sales is during the summer so the Minnesota market is right on track as far as a price increase goes.
The price increase combined with fewer offers will actually help home buyers in Minnesota or those who are moving to Minnesota because it will increase the chances that their offer on a home will be accepted on the first try without them having to put multiple offers on multiple homes.
Minnesota lake communities are more affordable than you might think.
Inventory Of Homes In The Twin Cities Area
The number of homes that are coming on the market in the Twin Cities and the surrounding area rose slightly in May, which is also typical of this time of the year. The summer sales season really starts in June, but in May is when many home buyers start planning their buying strategy so that they can move quickly on a home they like in June and July.
What Does This Mean For Minnesota Home Buyers?
For more detailed information about the Minnesota real estate market in May watch the video but overall right now the market is strong for home buyers and it’s holding steady for sellers. That could change when interest rates go up again though, so if you’ve been thinking about buying a new home in the Twin Cities area now is the time to jump before prices and interest rates rise
If you have specific questions that you want to ask, you are interested in selling your home, or if you want to find your dream home in Minnesota let’s get that process started so you can be in your new home by the end of the summer!
Joe Carmack, Minnesota Realtor®
Keller Williams Classic Realty
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