How Will Corona Virus Effect The Minneapolis Real Estate Market?
The black sawn event happened. The economy was going strong, but now we can't even leave our houses. This crisis reminds me of 2008 market crash. I don't think this virus is going to be as bad on real estate in Minneapolis as the 2008 crash was. With that said, if there is uncertainty in the market, then the real estate market will not be the same as it was just a few weeks ago. Showings dropped over 30% on homes for sale that are listed over $1 million, but showings increased 4% on homes for sale under $350,000. The under $350,000 market is still hot. The first-time home buyers are in that price range; they make up the largest portion of the market. It will be interesting to see what happens. Interest rates are low. I am hearing 3.3% for a 30-year mortgage with good credit. That is a very good deal on long-term debt.
The problem is that prices are getting high and if people are losing their job that isn't going to help get a mortgage application accepted. If the virus goes away in less then 30 days, then I think the market will go back to how it was, very strong. If this crisis last longer, then who knows. I guess you just have to be smart either way. Supply and demand will always rule the market. Supply is still very low and people are still going to buy, but we will probably still see a drop in sales.
I don't try to predict the market. I just watch and see what happens. If you are buying now stick to the fundamentals: find a great home, in a great location, for a great price. Do your due diligence.