Home prices have been on the rise for nearly two and a half years in our market. And while monthly gains are not in the double digits anymore, we aren’t seeing prices dip. Here’s why:
Foreclosures and short sales are exiting the market
At the height of the housing crisis, more than half the homes for sale in the Twin Cities were “distressed” – meaning that the owners were in foreclosure or listing as a short sale. Eager buyers snapped up these bargain-priced homes, and in January 2012 our local market saw a median home sale price of just $150,000. (Northstar MLS)
Today, less than 19 percent of local homes for sale are distressed properties. The result? A surge in home prices. For today’s local homebuyer, the median price at closing is $215,000, an increase of nearly 70 percent from early 2012. (Northstar MLS)
Seller confidence is on the rise
Owners are paying close attention to their rising home values, and gaining confidence as a result. A recent report from BMO Harris Bank shows that 67 percent of Minnesota homeowners believe their home value will rise in the next 12 months. The short analysis is that Minnesota homeowners know they hold the advantage. They’re not only expecting their full listing price once they decide to sell, they are hoping they have a multitude of offers to choose from.
The last word
It’s easy to kick yourself for not buying in 2011 or 2012, when the prices were low and the options plentiful. But there is good news for today’s buyers. Mortgage rates continue to stay at historically low rates. If you have good credit, you can still save money in the long-term. Read more on home financing in Minnesota.
Ready to dip your toe into the buyer’s market? Don’t hesitate. Reach out today and our team of local experts will help you get pre-qualified for a mortgage.