I hope this quarterly market update finds you all healthy, happy and enjoying our warm days. I wanted to jump right in to the hottest topic of the summer… the “real estate market shift.”
What has changed?
The market shift we are seeing is fewer buyers actively looking for homes. In the real estate world, we believe the shift is due to: ♦ interest rates rising ♦ concern about the general economy (looming recession?), and ♦ the summer season. (Other than in 2020 and 2021, summers are usually quite a bit slower for our local real estate market as many people choose to focus on cabins, travel, camps, and generally enjoying all that Minnesota has to offer when it is warm.)
What has NOT changed?
Even with a shift, it is still a Seller’s Market. Americans (and especially those of us here in the Twin Cities) have a greater amount of equity in our homes now than EVER before. Because of that, there isn’t an urgent need to sell, or to discount a home so that it sells quickly (read: no foreclosures!). Even if the economy hits a recession – because of safer lending practices, we won’t see an onslaught of folks having to sell because they can’t afford to stay. In addition, as of June 11, 2022 we have approx. 7,450 homes available in the Twin Cities. A balanced market is twice that (when it is neither a buyer’s or seller’s market).
So, your friends/colleagues/family members may not see 15+ offers when they sell their homes this summer, but if they price and prepare correctly, they may very well still sell in multiples – just maybe single digits with fewer crazy caveats!
Do you have any real estate-related questions? I’m always available to help!