Generally, the housing market slows at the beginning of winter, and doesn't pick back up until the spring market begins in earnest. This year, experts believe that our local market might keep booming straight through the coldest months.
Mortgage rates have fallen
Last spring, as buyer demand soared, rates began to slide up. In September, the Federal Reserve committed to buy $85 billion a month in bonds – a move that should keep rates low for buyers in the near future.
Sellers are motivated
Median sales prices were up 11 percent in October 2013 over the previous year, and days on the market decreased 27 percent. As more and more sellers come out from underwater and see buyers competing over quality listings, they are entering the market. New listings were up 15 percent in October, showing seller confidence is increasing, too.
Rents are rising
Despite a major boom in multi-family housing developments, rental prices in the Twin Cities continue to rise. Nationwide, vacancy rates are at an eleven-year low of 4.5 percent; in the Twin Cities, the vacancy rate is at 2.5 percent. As mortgage payments begin to rival monthly rental rates, frustrated renters are encouraged to look into their homeownership options.
Whether you’re buying, selling or considering both, our Customer Care team can help – no obligation and no expectation. Reach out today to get matched with an agent, or to talk about mortgage rates, your home value and more.
*In its original publication, this article stated that the Federal Housing Administration would be decreasing FHA and conforming loan limits in the spring of 2014. The FHA has since announced that they will not decrease loan limits in 2014.