Understanding The Minneapolis St. Paul Area Real Estate Market

The Twin Cities real estate marketplace is complex and changes quickly. It is dependent on many factors, ranging from the state of the national and local economy to current employment statistics and lending practices. As we move into the second decade of the 21st Century, the market is unsettled and somewhat depressed. The high home prices of just a few years ago are gone, and many homeowners who used creative financing techniques like variable-rate mortgages to purchase homes in recent years are finding themselves in financial distress. New home construction has slowed down dramatically, and the inventory of pre-owned homes has risen. Many Twin Cities employees have lost jobs, adding more stress to the real estate market.

Currently, there are many more homes on the market than there are buyers. When that happens, real estate becomes a buyer’s market. Homebuyers have the advantage and there are many homes from which to choose. Sellers, on the other hand, find that it takes longer to sell their homes, and prices are often lower than they wish. At the same time, mortgage interest rates continue to be at historical lows, while lenders are remaining very strict in their lending requirements.

Adding to the market conditions are the large number of homes that have been subject to foreclosure by lenders. These, along with homes with owners who are experiencing financial difficulties have acted to further depress home prices and add to the inventory of homes for sale.

All of these conditions are subject to change, of course, and they are changing. With the economy slowly recovering from the slump that began in 2008, home sales have leveled off and are beginning to rise. Home prices, too, appear to have reached their lowest levels, and are also starting to rise slowly. If the trend continues and the economy continues to improve, interest rates may begin to rise as well. The conditions affect homebuyers and sellers very differently.

Market Impacts on Minnesota Homebuyers

While the current Twin Cities real estate market can be characterized as a buyer’s market, it’s also a complex market for buyers looking for the ideal home for themselves and their families. Conditions and prices vary widely from community to community. Homebuyers need more help than ever to find the best home value. REMAX Advantage Plus understands this, and can help you to find the right home at the right price. Here are some factors to consider:

Location – Prices for similar homes vary, depending on location. At a particular price point, you may be able to buy more home in one area than another. Exploring homes in more than one community may be to your advantage.
New and Pre-Owned Homes – Newly built homes can be a great deal right now. Developers are making exceptional deals. Pre-owned homes have flooded the market, and expert negotiation can bring prices down.
Distressed Property Bargains – Many homeowners need to make a quick sale to avoid financial difficulties. Necessity can often lead to bargain prices for buyers who can act quickly.
Low Mortgage Rates – Well-qualified borrowers with high credit scores are able to get home financing at historically low rates. Rates could rise at any time, so acting soon could save money in the long run.
Changes are Coming – The current buyer’s market won’t last forever. If you’ve been thinking about a home purchase, the time has never been better to buy.

REMAX Advantage Plus has its finger constantly on the pulse of the Minneapolis St. Paul real estate market. Our experienced, hard-working, and well-trained agents can help you understand this confusing market and find the home you want and deserve. If you’re considering a home purchase, contact us now to discuss your dreams. We can help you find the home that makes them come true.

Market Impacts on Twin Cities Home Sellers

In a buyer’s market like the one currently in effect in the Minneapolis St. Paul metro area, homeowners trying to sell their homes need the very best representation to sell their home quickly and at a good price. Half-hearted marketing efforts and real estate brokers who list homes but don’t follow through with hard work just won’t do. If you’re selling your home for any reason, you need action, not delays. Here are some of the issues with home sales in today’s market:

High Inventory of Unsold Homes – Right now there are far more homes for sale in the Minneapolis St. Paul area real estate market than there are active buyers. Getting your home sold quickly means that proper pricing and active marketing are critical.
Low Prices Abound – Many home sellers are motivated by financial issues today. That means that prices for all homes are lower than sellers would like. Pricing your home accurately, realistically and attractively has never been as important.
Competition from Lender-Owned Homes – Foreclosures have put additional pressure on home prices. Short sales, too, are impacting prices. Resident owners, though, still have a strong advantage, since vacant homes are more difficult to sell.
Do You Need a Fast Sale? – If you’re in a tough financial situation with your home, time is of the essence. You need the very best real estate broker to list and market your home before your situation worsens.
Changes May Come Slowly – Changes in the real estate market are coming, and may affect the sale of your home. Evaluating the current market and adapting to changes requires expertise and experience.

REMAX Advantage Plus can help you sell your current home quickly and at the best possible price. We are constantly evaluating the real estate market in the Minneapolis St. Paul metro area. Our expertise and experience, along with our dedicated, active marketing strategy and large staff of agents make us your best choice when listing your home. Contact us now for an evaluation of your home’s value and to discuss listing your home with us.

REMAX Advantage Plus – The Best Choice for Minnesota Buyers and Sellers

Nobody knows the Minneapolis St. Paul area real estate market better than REMAX Advantage Plus. Our six locations are staffed with some of the most qualified and motivated Real Estate experts in the Twin Cities. Whether you are searching for a home to buy or looking for a buyer for your current home, choosing REMAX Advantage Plus is the best decision you can make. Contact us soon to discuss your real estate needs. Let us show you how we can help.