The Minnesota Real Estate Market Conditions – Vital Information for Buyers & Sellers
Search Minnesota Homes for Sale As everyone knows, the U.S. economy fell into turmoil in 2008. The housing market was obviously affected, along with every other aspect of the economy. Now, in 2014, an economic recovery seems to be slowly taking hold, but the effects of a long economic downturn has strongly effected the real estate market nationally and in Minnesota as well. The effects are dramatic, but it’s not all bad news. Every market situation brings opportunities as well as difficulties, and the current conditions are no exception.
A Buyer’s Market Emerges in Minnesota Real Estate
As the economy continues its recovery from the crash in the late 2000s, buying a home or other property is beginning to look like a better and better idea all the time. In recent years, Minnesota experienced a seller’s market, with buyers bidding against each other and driving up prices for the limited number of quality properties on the market. Then, many factors occurred to depress the housing market. Among these factors are:
- Home Price Decline – The value of Minnesota homes decreased since the 2006 height of the market. Increased unemployment, real estate speculation, and untenable mortgage practices led many homeowners into precarious situations. When the mortgage crisis occurred, loans became difficult to obtain and many homeowners were forced to sell or lost their homes to foreclosures. Home values declined to levels not seen in years. Worse, few people were in the market to buy, as they waited to see what might happen.
- Large Home Inventories – Since more homes were for sale than could be sold, home inventories in Minnesota grew rapidly, reaching new highs. Adding to that, homes in foreclosure were added to the market. Many of these homes weren’t in salable condition, further lowering median home prices and further depressing the market.
- A Tight Mortgage Market – With economic conditions slowing and the mortgage industry in turmoil, it became more and more difficult for prospective home buyers to obtain mortgages. Despite record low interest rates, mortgage lending plummeted, adding to the real estate market downturn.
An Upturn Continues for Minnesota Real Estate
We all watched the housing market’s problems as they developed. With a recovery developing in the last couple of years, many Minnesotans are taking a fresh look at the market and finding new opportunities. Whether you’re a first-time home buyer, a homeowner ready to upgrade your home, or an investor looking to take advantage of bargain prices, the current market is full of opportunities. Here’s how many are taking advantage of the new buyer’s market in Minnesota:
- First Time Home Buyers – If you’ve been waiting for the right time to buy your first home, that time has arrived. Home prices are still 20% plus off 2006 prices, and inventories are also low, with only 11,000 homes in the Twin Cities market. If you’ve been saving for a down payment and working to increase your credit score, lenders are offering mortgages at great interest rates. There are many excellent opportunities in foreclosed homes and short sales. You can further leverage your home-buying dollar by fixing up a home and building valuable sweat equity.
- Current Homeowners – If you’re ready to make a move, now may just be the right time. Even though many owners’ current homes are worth less than the prices of 2006, the price of your next home is also lower than it was. If you’ve kept your current home in top shape, there are ready buyers for homes that are move-in ready.
- Real Estate Investors – Current vacancy rates in apartments are at an all-time low, driven by the high foreclosure rates. With home prices down, opportunities abound to invest in rental property. Many investors are buying up foreclosed or short sale properties at fire-sale prices, quickly rehabbing them, and then renting them out, in anticipation of future price recovery.
- Home Sellers – Well-maintained homes are selling extremely well in this current 2014 market. A little sprucing up and updating goes a long way toward making your home attractive to buyers, and is more important than it has ever been. The nicest home in the neighborhood still sells first, and at the best price.
Top REMAX Agents & Realtors – Your Best Choice in Today’s Market
At our REMAX Realty team, we’ve kept our finger on the pulse of the Minnesota housing market throughout recent difficult times. And despite the downturn, we work tirelessly for our clients. Humbled to be the #1 real estate team in Minnesota since 2006, we closed over 1,275 transactions in 2013. Whether you’re selling or buying, we’re ready to help you achieve your goals. For first-time buyers, we offer seminars to help you understand how to get the most from your real estate budget. For real estate investors, our individual mentoring and seminars can help you maximize your potential. For home buyers, our powerful search tools and experienced professional Realtors and agents can help you find and buy exactly the home you’re seeking. For sellers, our #1 ranking in Minnesota real estate and our dedication to effective marketing will help you get the most for your home. Contact us at any time to discuss your plans or to arrange a showing of a property you’ve found in our powerful real estate search tools. We’d love to work with you.