Twin Cities home sale prices reach record high

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According to the latest RE/MAX National Housing Report, the median home sale price in the Twin cities is now over $350,000.

High prices have made it difficult for first-time homebuyers.

Even if home prices drop, some realtors say rising interest rates will keep the monthly mortgage payments above what many first-time homebuyers can afford.

“You’re seeing a lot people who no longer have the ability or means that they did a year ago,” John Ahnemann, with Keller Williams Realty, said. “We could see a reduction in values over the next couple of years. I think it’s bound to happen, but with an increase in the interest rate, you’re still likely going to be paying more.”

The report also noted a few other key findings for Minneapolis/St. Paul:

  • Home prices are up 6% compared to last year.
  • Active housing inventory is down 9.5% compared to last year.
  • Home sales are down 8.7% compared to last year.