Why This Isn’t Your Typical Summer Housing Market
A REAL ESTATE TALE: Once upon a time, in a real estate world not so long ago, the market was balanced. Sellers could list their homes and find a home within the same timeframe. Inventory levels were plentiful and buyers had lots of great options.
In June, the supply of inventory varied in our Twin Cities market depending on price with $120,000 and below having 1.4 months worth of inventory to 3.8 months of inventory in the $1,000,000 plus price range (which is down from last year at this time from 11.5!) It will be really interesting to see the overall numbers for July once published, but, in real time, we are seeing more homes hit the market which is a sight for sore buyer’s (and buyer’s agent’s) eyes!
Currently, it’s still a great time to sell with continued appreciation, and now a more comfortable time to buy with less frenzy that the spring market. It’s an especially great time to move up into that home you’ve been dreaming of with interest rates STILL at record lows. Remember to take a look at what a monthly payment looks like, not just sticker price!
Feel free to get in touch if you’d like to chat about your specific situation!
Read on for more info as it relates to the US market in general:
In real estate, it’s normal to see ebbs and flows in the market. Typically, the summer months are slower-paced than the traditionally busy spring. But this isn’t a typical summer. As the economy rebounds and life is returning to normal, the real estate market is expected to have an unusually strong summer season.
Here’s how this summer is stacking up against the norm and what it means for you.
If you’re thinking of selling, now is the time. Work with your agent to list your house before it has more competition on the market.
Time on the market is still shorter than normal.
Unlike the typical summer trend, time on the market is moving at the fastest speed we’ve seen since NAR started collecting this survey-based information in 2011. The most recent Realtors Confidence Index shows that the average home is on the market for just 17 days, as shown in green in the graph below. This means houses are selling at a much faster pace than a typical summer, which the orange bars represent.
If you’re thinking of selling, data shows your house will likely sell quickly. If you’re worried about where you’ll go once your house sells, consider a newly built home as a good way to move up.
Price appreciation is still rising.
The last big factor making this an unusually strong market this summer is home price appreciation. According to the State House Price Index from the Federal Housing Finance Agency (FHFA), we’re currently experiencing double-digit house price appreciation and have an average of 12.6% appreciation across the country. The graph below uses data from NAR to show a more granular view of how prices have changed month-to-month over the past few years. The green bars show the current price appreciation we’re experiencing today. Our current levels are well above what we’ve seen in recent summers, shown by the orange bars.
If you’re thinking of selling, seize this opportunity to use your additional equity from this price appreciation to power your next move.
Bottom Line
This isn’t a typical summer. Whether you’re buying or selling, let’s connect to talk about how you can capitalize on today’s market conditions to sell your house or find your dream home.
Things To Do
St. Croix RiverFest
For more information and schedules, click HERE
Market Fest – White Bear Lake
For more information and schedules, click HERE
Farmers Markets
Saturdays thru Oct from 7:30-12
Corner of South Third and Pine Streets, across from the Historic Courthouse
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Bayport Farmers Market
Mondays thru Oct 18 from 2:30-6:30
Barkers Alps, 5th Ave N. Bayport, MN
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Luxury Deal Of The Week
22 Highway 96 E, Dellwood MN 55110
Courtesy of RE/MAX Results
Investor Deal Of The Week
305 5th Avenue N
South Saint Paul, MN 55075
4 BD | 2 BA | 2410 SqFt | $275,000
Courtesy of Welcome Home Productions, LLC
Trends
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