The Twin Cities real estate market is currently experiencing a unique mix of challenges and opportunities for both buyers and sellers. With interest rates hovering between 6% and 6.5%, and a shortage of inventory, the market is highly competitive, with multiple offer situations becoming more common. However, despite these challenges, buyers are holding their ground, and financing, appraisals, and inspection contingencies are still negotiable.
The Numbers
Looking at the latest figures from InfoSparks, the market has seen a drop in new listings by – 12.8% year over year to 65,143, while homes for sale have increased by 13.0% year over year to 7,687. Pending sales have also decreased by 23.6% year over year to 49,300, with closed sales down by 21.2% year over year to 51,509. Furthermore, the average days on the market have increased by 25.9% year over year to 34, and the months’ supply is up by 33.3% year over year to 1.6 months. These figures suggest that the Twin Cities real estate market is experiencing a period of stagnation, with a lack of demand in the housing sector.
Despite this, the average sale price has increased by 7.2% to $427,457, and the average original list price has risen by 10.2% to $457,485. However, the average percentage of the original price is -1.7% to 100.3%, which means that buyers are still negotiating prices and unwilling to pay the full asking price. Finally, shows per listing have decreased by 29.8% to 5.9, meaning fewer showings per property.
Outlook
So, what is the outlook for the Twin Cities real estate market in the coming months? It is challenging to make a precise prediction due to the market’s uncertainty. However, given the current trends, the market will likely favor buyers, with prices potentially stagnating. However, it is essential to remember that these figures represent a snapshot in time, and the market is subject to change.
For Buyers
Buyers looking to enter the market, the current climate is both a challenge and an opportunity. The lack of inventory means finding the right property may be more complicated than in previous years. However, it also means that buyers have more bargaining power and may be able to negotiate a better deal. When submitting an offer, buyers must consider the current market conditions and be prepared to bring their best offer forward. This means being pre-approved for financing, having a solid down payment, and being willing to negotiate inspection contingencies.
For Sellers
It is essential for sellers to understand that the market has shifted, and buyers are more cautious than ever before. As a result, it may take longer to sell a property, and prices may not reach the full asking price. However, sellers can still achieve a successful sale by pricing a property competitively, having it show-ready, and being willing to negotiate with buyers.
Conclusion
The Twin Cities real estate market is currently experiencing a period of stagnation, with a lack of demand in the housing sector. However, buyers and sellers can still succeed by understanding the current market conditions and bringing their best offer forward.
If you want to buy or sell a property in the Twin Cities, visit TWINCITIES.REALESTATE. Our experienced team of real estate professionals can guide you through the process and help you achieve your goals. So don’t wait any longer; contact us today!
Jerry Arguello
612-250-6287
