Covid-19 has made some consumers unsure of the future of Minnesota’s economy. But, unlike some industries, real estate is still holding steady.
In fact, if you’ve been thinking of building a new home, it’s still a great time to do so. There is currently a shortage of homes in the Twin Cities area. This makes building a home an affordable and smart option.
In this blog post, we’ll break down some of the real estate trends over the last few weeks and how we expect the market to look over the rest of the summer. Let’s dive in and see why it’s a great time to build a new home.
Inventory of Homes For Sale
As of the end of March, there are has been an increasingly low number of homes for sale. This creates a great opportunity for those who would like to build a new home. Year to date, there has been a roughly 12% increase in homes for sale throughout Minnesota. Following that number, there has also been an 8% increase in closed sales year to date. This all despite Covid-19 changing the way that homes are being shown and sold.
Selling a Home During Coronavirus
With social distancing and stay-at-home orders in place throughout the state of Minnesota, real estate has remained an essential business. Homes are continuing to sell, and consumers are moving, but finding and choosing their new home looks a little different than it did before. Real estate agents and homeowners alike are undergoing these steps to sell their homes.
- Increased digital presence
- More pictures than ever before.
- Video walkthroughs detailing each room.
- Video conferencing with prospective buyers
- Live video showings
- Self-navigatable 3D walkthrough
The lengths that sellers are going to in order to sell their house are further than previously required. But when you follow the right steps to sell your home, many are finding the hard work pays off. Minnesota’s own Kare 11 recently had an interview with a local realtor talking about buying and selling during the pandemic. You can find it here.
Low-interest rates were put in place to encourage more home buyers to begin checking out the market and looking to find potential homes. It’s also encouraged those who have wanted to build to begin their project while they can be sure to get one of the best loan rates in years. Some mortgage rates across the country are the best they’ve been in history.
The week of May 2nd saw an increase in mortgage loan applications giving the impression that buyers are beginning to start their summer search for a new home. And as most Minnesotan’s know, summer is the best time to sell and to build houses.
Finding the Right Time to Build
Covid-19 has played out differently for everyone. From the places you work to the communities you live in, everyone is experiencing something the same and yet different all at the same time. This makes finding the right time to build your new a bit difficult. But, if you’re considering building home, here are a few things that you should have inline.
Get Your Finances and Loan in Place
The first step to building a home is establishing your budget. It can be a little bit difficult to know what you want out of the house if you aren’t yet sure what you can spend. Because interest rates are so low, it might be the perfect time for you to apply for a loan and start dreaming up your new home. Check out our gallery for some beautiful, sustainable homes that we’ve built throughout the Twin Cities and surrounding areas.
Choose a Location
After you’ve secured a loan, you’ll need to look into different locations that you’d like to live in. Consider the education needs of any children you have, possibly restaurants and shopping experiences, and how far you might need to commute to work. These are just some of the factors that can play into choosing a place to build your new home. Recently we published guides for Edina, Wayzata, and Minnetonka; you can learn more about each of the cities within those posts.
Find the Right Builder
Lastly, you’ll need to find the right builder for your project. When looking for a contractor to work with, there are a few things to consider. Do they put your needs before their own? Do they have your best in mind? And, do they have a good reputation throughout the communities that they’ve worked in. You’ll be able to find answers to these questions by looking through their websites, reading online reviews, and interacting with them. Many builders will offer free estimates. Take advantage of those as you get started.
At Sustainable 9, we think it’s a great time to look into building a home. Not only is the market holding steady, but the interest rates are low. We’d love to talk to you about building your dream home this summer, and we’d be honored to be a part of your new home.
Reach out to us today to begin the conversation to get started working towards your new home.