Twin Cities Home Sales Set Price Record
According to the Minneapolis Area Realtors (MAR) association, the median sale price for a home in the Twin Cities reached an all-time high of $285,000 in May.
It’s the third month in a row that the market has set a median sales price record, but experts say it’s due in large part to a low inventory of homes.
“We haven’t had the influx of homes that we were hoping in the end to end up having, so the homes that are out there have continued to go up in price,” said Jerry Moscowitz, a realtor from RE/MAX Results. “And it doesn’t come as a real big surprise to us, because again, we still are fighting a shortage of homes that are out on the market right now.”
Experts say the price increase may be a sign that the local housing market is shaking off what was a slow spring. The MAR believes the slowdown was related to the record snowfall we had, and an interest rate hike toward the end of 2018.
So while that’s great news for the local housing market, the same can’t be said about people seeking entry-level homes. RE/MAX Results Realtor Jerry Moscowitz says first-time home buyers often find themselves in bidding wars, where they can go beyond their comfort level on price.
“So my advice would be for buyers is, make sure you are in your comfort level before you go ahead and move forward with a house,” he said. “And sometimes that may mean looking at houses that truly are maybe $20,000 below what you technically could afford or would be in your comfort level.”
Meanwhile, while there’s a high demand for homes on the lower end of the market, realtors say homes are moving at a much slower pace at the higher end of the market.
Essentially, MAR says it’s a tale of two housing markets.