Despite the fact that we’re in a strong seller’s market here in Minneapolis, it’s a great time to buy a home.
Although interest rates have climbed since they hit an all-time low of 2.5% last summer, they’re still sitting at just 3.25%, which is ridiculously low. If you’re renting, your interest rate is near 8%, which means it’s so much more affordable to own a home. This also makes now a great time to refinance.
With the lack of inventory, many homes are selling far over their asking prices and with multiple offers. This shouldn’t scare you, though. If it wasn’t a good time to buy, these homes wouldn’t be attracting so many offers. You’d be competing against buyers who feel the same way you do. Since last spring, accepted contracts are up 5%. Inventory is a problem, but we’re out there every day, and we’re seeing the terms of the purchase agreements from our listings. We’re telling our buyers what to do because we know what sellers are choosing.
You want to take advantage of rates now because they’re only going up from here. You can either buy now at a lower rate and for lower comps or wait six months when everything has increased. This is all the more reason to hire a professional real estate team to help you.
“If it wasn’t a good time to buy, these homes wouldn’t be attracting so many offers.”
On the flipside, if you’re thinking of selling your home, call us right away, because now’s a fantastic time to do it. Also, check out our weekly virtual Home Seller Happy Hour every Thursday at 7 p.m. to learn our secrets to preparing your home so it sells for top dollar. Marketing is everything in this market, and homes that are marketed well are getting offers that are $40,000 to $50,000 over asking price.
We’re still doing our monthly virtual Homebuyer Happy Hour as well, so tune into that if you’d like to know more about what it takes to get your offer accepted in this market.
We’d love to be your real estate resource, so if you have questions or there’s anything we can do for you, don’t hesitate to reach out to us. We look forward to hearing from you, and we’ll see you next time!
