The real estate market is booming all across the country in 2021. With people snatching up homes at record speeds, buying or selling a home can seem like a daunting task. Luckily, if you’re in the Minneapolis area, we’re here to help.
If you’re looking to buy or sell a home in the Minneapolis or St Paul areas, this is the guide you need. Read on to learn about the current state of the Minneapolis real estate market.
Minneapolis Real Estate Market Trends
Let’s start with a look at the statistics. Numbers don’t always tell the whole story, but it’s a great place to start.
Houses are getting more expensive, there’s no getting around that. Depending on which realtor statistics you look at, median house prices range from $340,000 to $350,000 which is not cheap. These prices represent an increase of between 13% and 15% from this same time last year, an unheard-of one-year price jump.
Not only are houses getting more expensive, but they’re also getting harder to buy. Homes in the Minneapolis area are spending an average of around 7 days on the market, less than half the time they were on the market last year. So not only do you need to spend more money on a house, you need to decide on it faster.
Inventory Versus Demand
If you’re wondering why houses are getting so expensive and selling so quickly, the answer isn’t simple. However, one huge factor plays into it, and that is the number of houses on the market versus the number of people trying to buy a home.
Inventory has plummeted in recent years, even as overall home sales have gone up. That’s because of the extraordinary amount of active home buyers. While the number of home sellers has stayed consistent or even gone up a little bit, the number of buyers has well outpaced that, resulting in limited inventory and a competitive real estate market.
Buyers are Taking Risks
Because of how competitive the real estate market is in the Minneapolis and St Paul area, buyers are taking risks they normally wouldn’t.
For example, some realtors are seeing up to 30 or 40 percent of their buyers waiving house inspections in order to rush the purchase along and secure the home. Others are paying well over the asking price without considering if the house is worth it.
Get the Upper Hand in the Minneapolis and St Paul Real Estate Market
Just because the Minneapolis real estate market is extremely competitive, it doesn’t mean that you need to get caught up in the frenzy. At Elhm Realty, we’re here to help you buy or sell your home in a safe, informed, and competitive way.
Whether you’re looking to sell your home and want to take advantage of the favorable market, or you’re trying to navigate your way through buying a home, we’re here to help. Check out our inventory of houses today, contact us to talk to one of our incredible realtors, and we’ll do the rest. Happy house hunting!