Real Estate Update

 

December, 2018

NEWS FLASH -- This is the time to buy.  

I’m saying this boldly as a public service to anyone who knows me.

Prices are down, inventory is up, and in my opinion, we are in a very temporary backslide in pricing. 

                Right now... today... 

... there are so few buyers out there that I couldn't even get a SHOWING at my $400,000 Linden Hills bungalow.  

I dropped the price from 400K to 375K on this beautiful 1920’s craftsman bungalow with an upstairs 2nd bath in Mac Groveland…

 

And not one single realtor showed it after that quantum-level price drop. 

People think this was a banner year for real estate.  The fact is, Real Estate Productivity is down over the last year.  And down over the year before. 

Also true is this:  People are streaming to the Cities.   

 

We learned that after the 2010 census, and the coming 2020 census will confirm it.  This is why the mayor is pushing for more housing, and why the Twin Cities has huge housing developments everywhere.   

 

            ---   Yes, most of these new constructions are large, apartment-style rental buildings. . .

Which means single-family houses in Minneapolis/St. Paul are going to become more and more valuable.  

 

Land itself will become more and more valuable.

Here's one more chart, which brings me back to 

my opening paragraph -- 

Notice the seasonal rise and fall of inventory -- 

The number of homes for sale -- right now -- is

at our year end peak.   

There are more homes on the market  -- right now --

than there has been since November 2017. 

Here’s the takeaway:

Over the next several years, single-family home prices are going UP in the Twin Cities. 

AND – right NOW --

We are in a temporary backslide. 

So, here’s my advice to buyers: 

If you have a realtor, call him and tell her that you want to talk about making the move NOW, as opposed to waiting until next spring:   

 

There is less competition, there is inventory to choose from, and sellers are dying for an offer…

 

Larry LaVercombe

Lakes Area Realty

larry@larrylavercombe.com

612.925.0000

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