Homes Under $500K Hard to Find, ‘This Market is Not for Faint-Hearted’
Plymouth realtor Kelly Mathisen says the current market is not for the faint-hearted.
“It’s very competitive,” said Coldwell Banker realtor Kelly Mathisen. “It’s a discouraging thing because $500,000 is a lot of money to most people.”
Some realtors call it the worst inventory shortage in decades. The supply of homes for sale under $500,000 is low, according to a new report from Minneapolis Area Realtors. The average median price of a home is $353,000, a new record.
Mathisen says it’s slim pickings in the northwest metro. She checked a list of available single-family homes this week on MLS for under $500,00. Only 29 are listed.
Active Single Family Homes under $500,000
- Plymouth: 6
- Maple Grove: 7
- Crystal: 9
- Golden Valley: 7
Mathisen says the limited inventory is pushing home prices higher and with rising mortgage interest rates, buyers have to dig deeper into their wallets.
“Interest rates as of today are hovering around five and a quarter, which in February they broke 4 percent and again, this is for the average 30-year fixed-rate mortgage,” explained Mathisen.
She says the increased interest rate will hurt first-time homebuyers the most.
“It decreases their buying power because it increases their monthly mortgage payment,” said Mathisen.
Mathisen says there are several things buyers can do to make their offer stand out. She says plan now, even if you’re considering buying next year, and make sure you have your finances in good shape.
“Don’t start looking at houses at the top end of your budget of what you think you can afford, especially with interest rates changing so quickly. What you can afford today may be different from a year from now,” she said.