Inner-ring Suburbs See Jump in Home Sale Prices
There’s some good news on the housing front for those looking to buy a home. Inventory has increased, but it’s still a sellers market with home sale prices continuing to rise.
“Some of the areas we have seen the biggest increases in are what we call a first-tier suburb,” said Jerry Moscowitz of RE/MAX Results.
Inner-ring suburbs like Crystal that are seeing the biggest increases. In that city, the median sales price rose 11 percent in July to $238,000, according to data from the Minneapolis Area Association of Realtors. The median Twin Cities sales price in July was $268,000.
According to Moscowitz, homes are often selling over listing price. He says buyers need to be prepared that they may have to pay more than asking price, especially starter homes.
“In our area Robbinsdale or Crystal is where people are typically looking for starter homes,” said Moscowitz.
Starter Home Prices Increase the Most
Maple Grove and Plymouth consistently have the highest prices for homes. However, Moscowitz says that home prices across the northwest metro have also increased. Homes in suburbs that are closest to the city have increased the most, he said.
“Brooklyn Center, Robbinsdale, Crystal, and New Hope to be specific. The starter home prices have seen the biggest increase in price, in those areas from a percentage standpoint,” said Moscowitz. “However, all starter homes have increased the most in price over the last year or two years.”
On average, starter homes only stay on the market for about two weeks. If you are looking to buy, Moscowitz says you should make an offer that is what he calls “seller friendly.” That means you should have a strong pre-approval letter for your mortgage loan and you should avoid asking for extra renovations to the home.