Home Prices In Minneapolis Drop 10%
Home prices in Minneapolis have dropped about 10% since May 2019. The median price in May was $301,000, but now the price is down to $271,500. The $300,000 price tag was the first time home prices in Minneapolis averaged above 300k. The days of affordable houses in south Minneapolis seem to be just a good memory. Even in north Minneapolis median home prices are up also 400% since 2012. The median value in north Minneapolis today is almost $200,000. The number of homes for sale since September has dropped 25%, which is a very steep decline in just the span of a few months.
I expect the number of homes for sale to drop even more through February. We could see another 10-20% drop. If you are looking for a deal they will be hard to find. Interest rates are near historical lows, about 4.5% is the average, so it is still pretty cheap to borrow money.
The economy is very strong, wages are up and the stock market has solid gains for the year. Overall, things are very good in Minneapolis and that sends more buyers into the market. When the economy is good people like to buy and they will often pay more. The best buying advice I can give is get a great realtor that knows how to find a great deal and lock up the deal so you get that instant equity.
It is very hard to secure great properties right now and having the insight on how to negotiate the deal so your offer gets accepted will make the difference between getting a great home that will build lots of equity, or missing it. If you miss out on the deal, then you could be shopping for months longer, hoping to get something as good, which isn't always the case.
There will be many buyers competing for the same property at any given time. My advice to sellers is get a great agent to help you sell your home. I know a lot of people think they can sell their home themselves, and that is true, you can do that, but how do you know for certain you are getting the highest price? How do you know you are not leaving money on the table? How do you get the home to sell for the price you want? How do you know for certain that you are preparing your home properly to even get the best deal? How do how you know how to negotiate your deal so you get the best terms?
There are a lot of variables in a real estate transaction and not knowing how to navigate them and make the right decision at the right time can costs you thousands of dollars or can lose the deal outright. So many times I have seen sellers leaving thousands of dollars on the table by not getting their homes prepared to sell for the highest price and not having a great realtor working for them. The way I see my value is that if I charge $8,000 to sell your house, but I make you more $8,000 or more and you don't have to do all the work, don't have to worry if you are missing any details you don't even know about, then that is a great deal for you. I see my counsel and representation as a net gain for my sellers and my buyers because I know from experience what gets more money when you are selling and what saves money when you are buying.
There are a lot of inexperienced agents out there and most have never sold more then 30 properties in their career. Most don't take the craft very seriously. So many times I see inexperienced agents miss critical opportunities for their sellers to get more money. If you are looking to buy or sell in south Minneapolis give me a call.