CURRENT REAL ESTATE MARKET OVERVIEW – Saturday June 29, 2024
For the Minneapolis Real Estate Market, honestly nothing has changed and the current interest rates remain flat, but also A GIFT to those looking to Sell and make their moves! With interest rates staying a little higher, it's just enough to make many Buyers 'Hold'. So for those that are looking to buy right now, it's an amazing time, especially beings there is less competition in this Seller's Market, but still providing opportunity to grab a lower interest rate Loan through a buy-down.
What you do not want to do is wait until rates come down another 1%, because with every 1/2% in drop, 4-Million Buyers enter the market. Then you'll end up having to purchase the home you want Over Asking, and likely enter into a multiple-bid situation. So now is an amazing time to BUY! Please don't miss out on this because it could be years before this same opportunity comes back to you again.
Current Mortgage Interest Rates
On Saturday, June 29, 2024, the national average 30-year fixed mortgage APR is 7.05%. The average 15-year fixed mortgage APR is 6.57%, according to Bank Rate's latest survey. But then compound this and take a look at what your next Loan Offer might be if you take advantage of one of our banking brokerage partner's offerings. You might even see your rates of purchasing a new home down into the low 6%'s, maybe even trickle into the high 5%'s if you purchase a home with us.
Minnesota's Peak Buyer Activity Has Passed for 2024...
So we are past the June 10th Peak Buyer date for the Minneapolis housing market. This date as you know is/was noted for the Highest Buyer Traffic of The Year!!! But now comes the flood of those whom have delayed Selling their homes and wow, there are simple some gorgeous 'Coming Soon' and New Listings that hit the market this week. So whether it's a home on a Golf Course (we have a LOT of these right now) or a home with a Pool or Sport-Court inside, reach out and let's take a look.
How An Election Year Affects The Real Estate Market
- Home Sales Might Slow Down, But Not For Long...
- Home Prices Don't Fall, They Usually Rise (and they have)
- Mortgage Rates Should Continue To Trend Down After The Election, ~December
Thursday night was the Presidential Debate! No doubt that even though the FED's were poised to reduce the interest borrowing base-points multiple times this year, that this Election Year has done nothing but create a subtle YoYo effect in the Market.
Though the average Interest Rate remains 10% since mortgages became a thing back in the 1930's, interest rates for buying a home have bounced between 6% and 8%. So today's 6.57% to 7.05% national average are actually the median, straddling everything we've seen in rates this entire year of 2024.
You've heard me say this before, "we'll likely NEVER see 2% to 3% Home Interest Rates again in our Lifetimes, not even if there were another pandemic."
What I am seeing from just about all the TOP analysts with their forecasts right now is that Home Prices are going up a guaranteed 10-15% by the end of this year, and lots of 'surety' or in a better term 'bond' that there will be a rate decrease in December or January, right after November's election. This supports how election's impact your housing market.
But how much will interest rates drop in December, and are you ready to SELL this winter? I assure you that if rates drop December/January like the next BIG 'speculation' states, that no one will care about moving over the snowbanks, but that many WILL care as this will trigger having to buy over Asking again, and also very likely cause them to have to entering into a 'multiple bid' situation, which creates a LOT of buyer anxiety with potential losses. One home but 30 buyers will always = 29 losses.
Current DOM Expectations
Days On Market are all over the board right now. We have homes that are perfectly positioned in the right neighborhoods, in the right School Districts with owners that have taken the time to prepare their homes for sale, that are being marketed the right way, that are seeing their homes sell in just a few days.
But we are in a time when there are a lot of Buyers out there that are simply taking their time to look at homes, some returning to the same home many times, before pulling the trigger. This is a product of 'rate increases' with reasoning that it takes some people a lot longer than others when mortgage rate increases happen.
We also have a lot of the 'Covid' purchased homes hitting the market again, Analysts say over 50%+ of the homes purchased between 2020 and 2022 are back on the market because buyers simply purchased a Home they should not have, or they've found something wrong because they opted to purchase without inspection. Buyers are being extra careful to review and almost 100% demand inspections again.
...and one other factor to homes sitting on the market longer is the fact that the savings people created due to and during Covid have been exhausted. This was just reported yesterday afternoon.
For this, DOM has about doubled for many homes. For Samples, Princeton is seeing 50+ days for the average home's sale, Maple Grove 15+ days and Minnetonka Beach (Lake Minnetonka's West Side) 2+ days.
However, While smaller cities are seeing an increase Days on Market, homes that are between the $1M+ to ~$4.5M are now Selling more quickly and more in demand! Yet again, the toughest price-point to sell remains that $650K to ~$999k range. This is a range whereas many median income people cannot quite afford but also too low for Move-up buyers' to have interests.
Pulling The Trigger - Sell or Buy Now
Whatever your Home Selling and/or Buying situation, we are seeing your opportunity to purchase a New Home with less competition, diminishing. You have about 4 months to Sell your current home and slide into a new home before the November election, IF you want to avoid competition when the interest rates organically correct December/January.
Reach out if I can help you secure that 2-for-1 buy-down or even a 1-1 buy-down so you can get a very low interest rate now. Purchase your new home now with less competition while taking advantage of a lower interest rate that is 'said' to be coming in December/January.
The timing right now could not be more clear to US or anyone looking to Sell and Buy; No need to wait or compete against others if you can buy for low today, again without competition. It just make sense...
Ready to make your Move? Let's meet today - 763.843.2905
