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!

Sometimes it snows in April…
But then it melts quickly and we can look forward to GREEN days ahead!

Greetings! Just a quick note as we have wrapped up the first quarter of 2022. Similar to last year, the number of buyers far outweighs the number of sellers meaning we are still seeing most homes sell quickly and in multiple offers. A new twist is interest rates rising a bit. While still (in the grand scheme of things) quite low (today’s conventional 30-year rate is 4.875%), it means buyers who are financing a purchase can afford a little bit less than they could last year – and the prices for homes are a little
higher. This results in some buyers backing out of the market. We are also seeing more sellers “test” the market with higher prices – and not selling. It’s definitely an interesting time in real estate, so keep an eye out for future recaps to keep a finger on the pulse!

Spring Homeowner Tip! Check your gutters and downspouts – make sure they are clear and
attached to direct any rain or melting snow away from the foundation of your home. When the soil
is still somewhat frozen, it can’t hold much excess water – spring is the most common time to see
wet basements!

Wishing you a warm start to Spring and a prosperous second quarter. If you are considering selling
your home, I’d love to interview for the job!