Here’s everything you need to know about Twin Cities real estate. 

What’s happening in our autumn market? There are a lot of articles out there speculating about it; some of them are negative, and some of them are positive. It can be pretty confusing for people wanting to make a move, so today we want to go over the numbers and let you know what’s happening in the Twin Cities Metro area. 

In a typical market, the fall is when things begin to slow down. However, this market is anything but typical. Mortgage applications increased by 7% this last week. That’s the biggest jump we’ve seen since April, and it means we could see buyer demand remain strong in the fall months. 

While home values are expected to continue to increase, they will probably increase at a slower rate than before. Home prices have increased at a rate of 11.74% in 2021, but that number will probably fall to a healthy 5.82% in 2022. 

Interest rates will also probably increase in 2022. By quarter three of 2022, interest rates are projected to be 3.55%. These are still low rates, but they are certainly higher than the 3.18% rates we see right now. 

Sellers need to be careful how they price their homes in this market.

Our advice to buyers frustrated with our hot market is that now may be the time to make a move. Interest rates remain low, and homes are staying on the market for longer than before. Home values are only expected to go up, so take advantage of this window while you can.

For sellers, it’s still a great market. Buyer demand remains strong, and inventory is still low. However, be careful about your pricing strategy. If you list your home too high, it could sit on the market and decrease in value. If you list it too low, you could be leaving money on the table. Talk to an expert to ensure you make the right decision.

Hopefully, this market update cleared things up for you. If you have any questions, please call or email us. We are always willing to help.

Also, if you are one of our VIP clients that have referred us to others or worked with us in the past, make sure to keep an eye out for details about our annual pie giveaway. We are excited to share our gratitude with you!