How The Stay-At-Home Order Will Effect The Minneapolis Housing Market
It is good to think of different possibilities during times of crisis. Sometimes you can have a good idea and that leads to your next great deal. One thing to think about is that a lot of sellers are going to hold off on listing their homes for sale for the next 14-30 days. From one perspective this isn't a bad thing. We have been in a super low supply era for almost 4 years. When the market crashed in 2008 there was a 8 month supply of homes on the market. Right now we have about a 2 months supply of homes for sale.
It wouldn't be so bad if we got up to a 3-4 month supply because that would keep prices from appreciating so quickly. Over the last 8 years home prices in Minneapolis have gone from a median sales price of $140,000 to $280,000. This sharp rise in home prices is the main reason we have housing affordability issues. So if sellers hold off from listing and buyers hold off too, then we should get an increase of supply once those sellers come back to the market. The buyers that waited will enter the market again as well, but they might have more options to choose from.