Real Estate Update
Mar 29, 2019
We are at the very beginning of the annual Spring Market Flurry.
Here's a comprehensive LOCAL Real Estate Analysis...
Prices rose steadily in our area from our own market low in March of 2012 to Jan 2018.
They have plateaued since then...
Will this spring show another increase... or have prices topped out? Will prices drop this year?
We remain at a five-year-low in both closed sales and new listings.
That has put downward pressure on pricing.
New listings were down. That meant less inventory. But closed sales were also down, so that meant less of that inventory was selling.
That's one reason prices didn't rise last year. (note both plateaus below.)
Meanwhile -- The 2010 census reported that we'll have 500,000 more people soon. Most of them will live in tall rentals. Minneapolis is building tall rentals to accommodate them.
As we accommodate that rental population increase, the value of single-family
homes is going to increase. At some point, people want a yard.
Will it happen this year? How much will prices rise this year, relative to next year?
Consider this: the number of homes for sale is at a low.
We plateaued at that low in March of 2017...
There have not been many homes on the market since then...
When houses start to come on... do you think prices are going up in Minneapolis, or down?
My opinion is that Minneapolis is under-valued nationwide. We are a great city. We should be priced higher than Portland or Seattle. Our quality of life beats theirs, hands down.
Prices are not going down in Minneapolis. They are going up.
My advice for you: If this is a long-term play, this is the time to buy.
If you have friends who want to move from the suburbs to the city -- now is a good time.
If you have kids who want to purchase in the city -- now is a good time.
And if you are thinking of selling -- call me :-)