Housing market frenzy continues in Twin Cities and across country
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Finding a house in the suburbs right now can be challenging. It’s part of the housing market buying frenzy being seen across the country.
The number of homes being sold across the country is going up during the pandemic. Zillow reports it’s one of the highest increases in sales since 1983.
Zillow also reports that, in the last year, the average home price in Minnesota has gone up by 6.6%. That brings the typical home value to more than $277,000. They also predict home values will rise another 10% in the next year.
Even so, historically low mortgage rates are making it an extremely competitive market for homebuyers, especially in the suburbs.
"More and more people have the luxury of working from home and so sometimes their search perimeters are expanding," Conor Hesch, a Bell Mortgage loan advisor, said. "They no longer need to live in just one city that’s close to their work. It means that realtors need to drive greater distances but it’s also giving people more choices and choices are important when the inventory is low."
Inventory is getting snatched up further and further from the city, also in part because some people are buying their second homes.
"If it’s going to be your vacation home or your second home, the interest rates are the same as if it’s your primary residence," Hesch said. "People are able to buy that cabin, buy that vacation property, sometimes even in Arizona, Florida, even in other states."
With more and more people leaving the city for suburbs, it can give some edge to the buyer.
"In short, it is still very competitive in Minneapolis. But yes, I think that there is a little bit of a lull, a little bit of an advantage that you can get," Eric Eickhof, a broker for Fulton Realty, said.
Eickof said it’s better to jump on these deals before the market is even more competitive.
"Housing value is definitely going up. Housing is one of those sectors that actually is pulling us through the pandemic," Eickof said.