Real estate, title companies, and lenders are considered essential services during the shelter in place order in Minnesota. You can complete nearly all the paperwork electronically, and closings are still happening with as few people as possible in attendance.
Surprisingly, the number of new listings across the Twin Cities metro has increased by 20% this spring, but the number of showings dropped 32% through the end of April. This drop seems like it would create a shift from a sellers market to a buyers market, but this impact has not been seen yet. Many properties are still receiving multiple competitive offers. Sellers are increasingly concerned about the stability of a buyer’s employment when reviewing offers.
Patience is key. The most desirable properties are still very competitive. We cannot predict what will happen over the next few months, but we do know there will be other properties out there. Stick to your budget and preferences, and the right property will show up.
Interest rates have been all over the place. Make sure you and your lender are in regular communication. You will want to stay updated on the rates for the loan program you are using.
If you can afford to pay closing costs (around 3% of the purchase price), this can be your edge over the competition. Sellers and listing agents are concerned about appraisal prices, so building closing costs into your offer could be a risk.
Median sales prices continue to rise, up 6% since 2019. Twin Cities inventory under $400,000 was limited prior to COVID-19, which is keeping prices stable through this pandemic. Median days on the market is down 4.5% or 3 days year to date.
That is the million-dollar question. Whether you need to move, would like to save money on rent, or are investing in real estate there are always opportunities out there. We do not anticipate a significant drop in prices, but then again, no one thought we would be stuck in our houses for the better part of 2020 either! If you are serious about buying, we would be happy to jump a phone (or Zoom call!) to discuss your specific goals and circumstances.
1 in 5 American households are multi-generational and interest in multi-generational housing is increasing. Multi-generational housing is defined as a home with members of more than two generations living under the same roof. Whether due to necessity or preference, more families are considering this arrangement and Minneapolis is well suited to address this demand.
What has changed about buying a house during Covid-19? A decline in the number of showings does not seem to have impacted prices.
Scott Hoefler of Side by Side Realty joins the Maximizing Your Property Value podcast to discuss the best strategies for living next to your tenants.
We are living through uncertain times and looking at the world differently than before. Our mission at Side by Side is to help you create financial freedom through real estate so you can weather any storm. Or pandemic.
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