If you’ve been considering purchasing a new home in Minnesota, now is the perfect time. While there may not be a substantial upturn in the inventory of houses on the market, the outlook remains positive. You’ll need to act fast, though; buyers may be facing more competitive pricing and increasing mortgage rates in the coming months.
At Home Avenue, we want to help you make the best home-buying decision for your situation. That’s why we like to keep you updated on current real estate trends that may affect your decisions. Read on to find out why now is the perfect time to buy.
The Potential for Rising Costs
While home buyers may be seeing a bit more variety in the market this Spring as compared to the early months of 2018, the number of new listings is falling. Compared to 2017, the number of new listings has dropped 17.5 percent—the sixth consecutive month of decline compared to last year.
If listings continue to decline in this manner, home buyers will see rising costs as the market becomes more competitive. Add in the fact that the Federal Reserve announced in May that they are planning two national interest rate increases, and you have a recipe for rising real estate costs.
Competition is Heating Up
Currently, the demand for new homes is high, while the supply has remained rather low. If you´re familiar with the law of supply and demand, then you´ll understand why this makes the market more competitive. Because the supply of homes is having trouble keeping up with the current demand, many buyers may have difficulty negotiating lower prices.
Fortunately, with an experienced real estate agent on your side, the negotiation process can prove much easier. If the current trend continues, the window may be closing for buyers to take advantage of the current market situation.
Is There Enough Real Estate to Go Around?
Right now, if no new listings enter the market, it would take approximately 1.7 months to sell the entire inventory of homes on the market. A balanced market has an inventory that will last approximately five to six months, making the current market extremely off-kilter. Add in the fact that new listings have been steadily declining for the past six months and future home buyers may have an increasingly difficult time negotiating affordable prices. If you’re considering a purchase, now is the time to act — you never know what the coming months might bring.
Contact Home Avenue for Flat Fee Real Estate Services
If you´re looking to buy a new home, you can count on Home Avenue to walk you through the process from start to close. With over 25 years of experience, thousands of satisfied clients, and our unique, flat-fee model, we strive to help you make the best and most affordable home-buying decision for your needs. We also put cash back in your pocket through our rebate program. If you would like to learn more about our services, contact us at 952-929-7355, or you can message us at info@homeavenue.com.