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Vaccine, Minnesota, Saint Paul The HIVE's Weekly Market Update – Week Ending January 2, 2021

Just wanted to check in with you on some statistics as we’re kicking off the real estate market. Here in 2021, new listings, we do have an upward trend here in new listings compared to the last month, or so people are starting to feel the new year and some new energy and getting to work on getting their houses on the market. So i see a little bit of optimism here on this first week of uptick in new listings, pending sales, which would mean a property is under, contract, has cleared the inspection window and is waiting to close pending sales did trend up here this last week. After a couple of weeks of buoyancy, and one of the things that we know at the holidays is that it often slows down those major decisions, uh just for a short bit of time and again, we are seed and pending sales, uh trend up, which is a Good sign inventory, i know you guys are getting sick of me talking about inventory remaining low, but again this week we do see another drop in inventory, and this is really something we’ve battled with through most of 2020 and it looks like it will continue to be An issue here in 2021, although we’ve got a lot of different things happening, we’ve got vaccines on the um on the front, hopefully for some of us i know our older minnesotans are starting to be vaccinated. We’Ve also got increasingly low interest rates, at least for the time being and then again, we’ve gone through some turmoil with the election status.

So there has been some uncertainty, i’m hoping to see that inventory will start to climb up. We often think of that spring market hitting right around the super bowl. So early february is the kick off off of spring market. Frankly between you and i i’d, like just plain old spring, to hit in february, but that is not the case. I’M sure we’ll have a cold february, but let’s get some houses on the market, as most of you guys would know. If we have very low inventory, it’s not going to take long for properties to sell we’ve got less to choose from people are making faster choices. So, on 2020, on average we saw about a 34 day market time so very low compared to the 2019 at 51 days and 2018 at 52 days. So if you do get your house on the market and we price appropriately, it looks like it will go. Darn fast for you, so let’s get to work, median sales price, and that would be the properties there’s half of the properties are listed below the median price and then half above and so for 2020. We saw that 310 thousand dollars was the median uh sale price for the eight county metro area, as tracked by the board of realtors, that was up thirty thousand dollars over 2019’s median sale, price and uh back in 2018, we were weighed on it 265., so people Often ask me: is real estate, a good investment? Are we continuing to see gains in real estate and appreciation and no doubt about it right now we are seeing a lot of appreciation and that does tie back into the supply and demand models.

If we don’t have much supply, people are often paying more for them. One quick point, though, although we do see inflated home prices, we are seeing very low interest rates and so that money out of pocket per month or that monthly budget should be quite similar to what you had seen even with lower home prices. So really most of us are buying houses with a mortgage. Very few people buy in straight out cash these days. So if we see an inflated home price and we see a low interest rate, we should normalize out and have a monthly payment that should be quite manageable for most people right now and again, check with your lender or we’ve got great references for you, but uh Interest rates are still hovering below three for a 30 year fixed, so very good rates right now, percent of original list price received and again this is the supply and demand. We often hear about bidding wars, or we hear about multiple offers and so 2020. Our overall sales price in the eight county metro area was at 100.2 percent of the asking price, and that just means that people often pay more or will get into a bidding more and pay more than an asking price to make sure that their choice is made. And that they’re the person selected to purchase that house, if you have any questions uh those multiple offer strategies, are something that we have done. Well, we sold 67 houses last year.

So if you need any help with navigating multiple offers, as things have gone, not as well for you in the past that’s, certainly something that i would be happy to share some advice with you on is purchasing and negotiating during a multiple offer situation. Month’S supply of inventory means that, starting today, if nobody puts a house on the market, we are going to see all of the houses on the market be absorbed here in the next 1.3 months, so that’s a significant jump down from 2019 uh, which was pretty flat With 2018., so again, if we don’t have a lot of houses on the market and they continue to sell, it would be 1.3 months and there would not be any houses to sell. So please, let me help you get your house ready to sell if you’re thinking about making a move with rates this low. I am telling people to really look forward to their goals with properties over the next five to ten years might as well take advantage of those low rates now and make sure that you’re finding a property that will suit your needs well into the future. It’S going to be a challenge years down the road when we have high rates and seeing people and when they’re going to be motivated enough to move, because, although the house might not be that much more expensive, if we’ve got higher rates, that monthly payment can be Um, pretty limiting.

So if you’ve got something in mind right now, i would love to help you find something that will meet your long term goals yeah, if you have any questions, certainly give me a call or check out the hive website at socialresponsiblerealtors.com.

What do you think?

Written by freotech

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