In 2020, the COVID-19 pandemic upended the spring home-buying season, driving buyer interest into the usually slower fall and winter months. But in 2021, the housing market has found its footing and is experiencing a hot spring market due to low-interest rates, limited inventory, and surging demand for housing thanks to economic stimulus and the pandemic stifling demand for consumer goods and services.
The market dynamics reflect similarly in the Twin Cities. In February, the inventory of homes for sale across the Twin Cities hit a 20-year low, but the competition for homes keeps accelerating prices upward. Minneapolis homes now live on the market for a fleeting 38 days before selling, down 35.6% from 59 days in 2020. Housing inventory for the Twin Cities metro also shrank by 45.8% year-over-year.
According to statistics from Minneapolis Area Realtors, the average sale price for southwest Minneapolis hit $501,806 earlier this year, 41% higher than the metro-wide average of $356,238.
Prices in the Lynnhurst shot up 9.5% to $590,000; the Fulton neighborhood was up 9.9% to a median sales price of $527,450, and in East Harriet, home prices jumped 15.7% to $420,500.
One thing is clear: we’re in a seller’s market. But the question on everyone’s mind is, how long will it last, and should you list your home now while demand is at an all-time high?
Should you sell your home now?
After months of sitting at historic lows, mortgage rates have started to increase. While we still don’t know which direction interest rates will go over the next few months, the demand for homes could begin to wane if they continue to creep higher. A reduction in buyer demand means a lower sale price for you.
There is a greater demand for homes due to a lack of inventory, but demand can wane at any point, and when it does change, it will change quickly. Once buyers have more options, they’ll have greater leverage at the closing table. The best time to get top dollar for your home is today. By listing your home now, you can enjoy the benefits of a low inventory market, meaning multiple bids, cash offers, no contingency proposals, and above-asking price offers.
Have the right team at your side
Partner with a listing agent who will have your back from showing to closing. At RE/MAX Advantage Plus, we pride ourselves on being expert negotiators and have a spotless track record to show for it. Your RE/MAX Advantage Plus Professional will negotiate the best offer to match your needs. Let us know what you’re looking for, and your RE/MAX agent will handle the rest.
Reach out to connect with a RE/MAX Advantage Plus Professional that will help you maximize the value of your home. Find an experienced Associate in your area today!