Cruise through virtually any neighborhood of Minneapolis homes, and you can’t help but notice the preponderance of “For Sale” signs swinging in the breeze. If you are hoping to purchase Minneapolis real estate, you have a huge selection of homes with low prices.
Home buying activity in the Twin Cities has slowed down from the hangover caused by the surge of sales that resulted from the expiration of the first-time home buyers tax credit. It seems like all prospective Minneapolis real estate buyers were incentivized by the credit and have already bought. Maybe some folks who were not really ready to purchase jumped o the opportunity to claim this perk offered by Uncle Sam.
The reality is that today’s current mortgage interest rates are absurdly low, and offer far greater savings than the As usual, the media is remiss in reporting this sort of thing. Thanks to the media purveyors of doom and gloom, almost any Minneapolis real estate agent you talk to can tell you about experiences with clients who were all set to buy a home at a great price, but got cold feet after reading the newspaper or watching the 10 o’clock news. This is what we call a self-fulfilling prophecy. I am not being Pollyanna about this because it is hard to deny that lender mediated listings dominate the large MLS inventory of Twin Cities homes. The Minneapolis real estate market is awash with foreclosure and short sale listings. Still, I don’t think the media is doing much to inspire buyer confidence.
A Silver Lining in the Minneapolis Real Estate Market
Pending sales increased from July to August, and buyers are still purchasing because they want to capitalize on the low rates and huge selection. Numbers of new listings actually went down, which, of course is a positive trend for sellers. Reports of falling prices are skewed downward because relatively fewer upper bracket homes have been on the market. Sellers are getting about 91% of asking price and move-up buyers realize that the savings from upgrading will found in the lower prices of more expensive homes. It is a great time to leverage yourself into a better house. Many sellers are realizing that they should not focus on the fact that they aren’t getting the price they want for their homes, but rather should consider the great prices and low interest rates afforded by the purchase of bigger Minneapolis homes.