Hot Summer for Twin Cities Home Sales, Median Price Reaches Record $342,500
The rise in home prices is not slowing down. According to Minneapolis Area Realtors, the month of May saw the median price of sales rise to $342,500, a record high in the Twin Cities.
In Robbinsdale, the median sales price rose to $290,000 last month, a nearly 10 percent increase over last year. In Brooklyn Park, the median price climbed to nearly $324,950, an 18 percent increase.
And in Plymouth, the median sales price reached $409,250.
Minnesota Realtors’ Chris Galler Calls Market “Exhaustive.”
Chris Galler, CEO of Minnesota Realtors, calls the real estate market “exhaustive.”
“A lot of buyers and sellers are exhausted by the pace that homes are selling,” said Galler. “It’s much faster than anything we’ve seen in the 30 years I’ve been in the business.”
Galler says other than low interest rates, the pandemic caused baby boomers to stay put longer in larger homes. Working families also sought homes that included an office.
But if you want to purchase a new home, Galler says you have to go into the process with a strategy that should begin with getting your finances in order. He says get prequalified and pull a credit report.
“You want to know 100 percent what you can afford because that’s going to be important because you are going to be looking at a lot of houses,” said Galler.
Galler says median-priced families will be looking at spending between $350,000 to $450,000.
“That $100,000 range is insane,” said Galler. “So don’t be surprised if you are not making multiple offers, multiple times at prices over what the listing price is.”
Home sellers might be excited about getting out in the marketplace to get the most for their house, but they often face challenges too.
“They are going to be going through that same competition just at a different price range,” said Galler. “So they need to get set and say ‘yeah, we are willing to sell’ and know it may only take a week, it may only take 10 days and you may have multiple offers.”
Minnesota Realtors’ Galler recommends talking with your realtor to develop a strategy and a timeline.
“Timing, strategy, patience,” said Galler. “And patience gets to be the challenging one.”
CCX News Executive Producer Corey Bork contributed to this report