Home Prices Rise for the First Time Since 2009
This year, for the first time since 2009, home prices in Minneapolis did not drop between October and November. In fact, they actually went up. Now why is that so significant and strange? Well, typically every year since 2009 (and in years prior to that), home prices followed a pattern where they decreased around late fall/early winter. So this shift in the norm means that 1) supply is still very limited, 2) demand is still very strong, and 3) Minneapolis continues to be a high demand area.
As time progresses, it’s clear that people will still want to live in Minneapolis, but it will become increasingly more difficult to find deals. Because the price is getting higher, the risk in purchasing goes up as well.
So what do you do? The first thing is to look for homes that have equity potential in really good locations. The key is to keep an eye out for homes that may be undervalued; if you have the opportunity to open up the kitchen or change the layout in some way, they you’ll add value and make the home more attractive in the eyes of the market. As long as you can add that equity to your property, you won’t need to take a hit on it in case you need to sell it.
So as we go into 2017, be sure to keep watching the market. Shifts can be unexpected, but purchasing the smart way is always your best bet. Give me a call if you’re looking for a property to buy or sell in South or Northeast Minneapolis. I’d be happy to help.