Despite the current chaos of the COVID-19 pandemic, the real estate market continues to boom. While this current boom is deemed a “seller’s market,” favorable marketplace conditions for buyers drive the current upswing.
All across America, first-time buyers are in a frenzy, trying to get themselves locked into the home of their dreams before an inevitable downturn.
If you’re thinking of investing in Cottage Grove, MN real estate, now is the time to act. Read on to learn the current market trends.
The driver for the current housing boom is the historically low interest rate on mortgages.
Depending on your credit score and loan program, you can lock in a rate of two to three percent on a 15 or 30 year fixed rate loan.
These rates are low. Part of the reason the Federal Open Market Committee set these low rates is to spur activity in the loan market despite the massive job loss and economic upheaval of the COVID-19 pandemic.
A residential investment now means you get a favorable rate should the market fluctuate in the future.
Right now, real estate in Cottage Grove, MN is highly competitive. Homes in the area receive multiple offers and often sell at two to four percent above list price.
Given the competitive market, you need a capable Cottage Grove realtor to guide you through the process. An expert realtor can help you maximize your value in a competitive market.
According to Zillow.com, homes for sale in Cottage Grove, MN have a median price of $297,740.
Zillow’s numbers show the median price jumped from $202,000 to the current $297,740 in the past ten years. That’s an increase of $95,740 in a decade!
Unless an extreme market disruption or crash occurs, prices should keep this steady rise. Zillow predicts the median price will reach $317,000 by September of next year.
This means your investment in Cottage Grove, MN real estate will pay off big time.
One of the major drivers of real estate pricing is new development.
New city development projects can push real estate market values through the roof in a very short period of time. Buying in a neighborhood or city where development is imminent but has not yet broken ground is a great way to find value.
The town of Cottage Grove is about to explode with new development. In January 2020, plans were revealed for a 75,000 square-foot mixed-use walkable development.
Titled Shoppes at Cottage View, this new project calls for new homes, apartment buildings, retail space, and green space. When built, this type of development will increase the value of your investment.
Buying Cottage Grove, MN Real Estate
Right now, the real estate market all across the United States is hot. Thanks to low and steady interest rates, buyers are willing to buy like never before.
Cottage Grove, MN real estate is on a steady trajectory. As interest rates are low and prices continue to rise along with new development projects, now is the time for you to lock in your dream home.
Looking for realtors near Cottage Grove to help you buy your dream home? Contact ustoday.