An article in the Star Tribune has brought some hope for would-be buyers. The article shares that while August had much the same to report – a record high (for August) median sales price of $268,000, houses selling in average of 40 days, a decrease in pending sales from prior year – one stat is encouraging. Namely, over 7,800 new homes were listed in August, which is apparently the largest influx in the past 3 years. So, while the local market is still somewhat handicapped by low starter-home supply, the increase in listings (almost 8% more than last year) is the first step towards a healthy market.
There will need to be several months of sustained strong listing activity to fully put-right the local market. But it seems the resulting balance isn’t expected to last long. In fact, as reported in another recent Star Tribune article, experts predict the local market could shift in favor of buyers by as early as 2020. One indicator is that the rate of home appreciation has slowed. In other words, while home prices are still rising, they’re rising at a lesser rate. Buyers may even now be acting on a limited appetite, keeping the gains more moderate. Stagnated prices would eventually force sellers to negotiate.
The gist of the matter is now is a great time to sell your entry-level home, but it will likely remain to be a good environment for that segment of the market for a while. If you’re looking to buy, get an experienced Realtor on your side to make it happen – we'd humbly like to throw our hat in the ring for consideration.