Every few months, we like to update our blog with information on the Minneapolis real estate market. As a builder in the Twin Cities, Sustainable 9 is invested in what’s going on in the housing market and how we can help home buyers make the best decision and investment possible.
Today we’re breaking down some of these trends and helping you better understand them.
Real Estate Market News + Trends for Summer 2021
As you probably already know, the real estate market in 2021 is hot. The housing market has been booming as many homeowners are looking to live in places where they can easily work from home post-COVID-19. No one really knows if COVID is entirely over, but homebuyers have been competing at all-time high levels to see who can make the best offer on their possible dream home.
Defining the Real Estate Market
You’ve probably heard of a buyers market. Homebuyers often have the luxury of looking for homes when there are lots of options to choose from. But these days, we’re in what’s considered a seller’s market. Those selling homes are getting multiple offers quickly and sometimes only have the home on the market for a week. The average sale price for homes in southwest Minneapolis hit over $500,000 at one point this year. That’s a massive 41% higher than the rest of the metro.
The Hottest Places to Live in the Twin Cities
COVID-19 made everyone more keenly aware of family and what truly matters. This clearly shows up in the housing market data. Schools, parks, restaurants, and commuting all impact how different metro areas stack up against each other.
While the median prices on the linked post are a bit skewed, there is some useful information here. If you’re looking to buy a home, you might find better luck by looking where other people aren’t as willing to look. While it might not always be the most convenient, it can still be a great way to get into a new home.
Average Sales and Price Are Up
Throughout the state, sales and home costs are up dramatically as of May 2021. Minneapolis realtors have reported closed sales up 14.5 percent to 7,982 and the median sales price up 15.7 percent to $310,00. There are more new listings, more pending sales, and even fewer homes for sale year over year. Homes for sale were down 50.5 percent to just under 9,000, according to this data.
As they say, supply and demand work together to determine the housing market. The fewer and fewer homes that there are, the more expensive they’re getting.
Vacation Homes are on the Rise
If you’ve been thinking about getting a vacation home or a lake home, then you’d be thinking just like the rest of the country. That’s right, nationwide vacation home sales are up 16.4% and were up 57% in just the first four months of the year.
As with the rest of the real estate market, it’s a great time to sell vacation homes but not necessarily the best time to buy. That doesn’t mean you shouldn’t buy. It simply means that if you’re going to buy a vacation home, you’ll need to ensure that you’re ready to bring your best offer right away.
Has the Time to Build Homes Gone Away?
Everywhere you go these days, there are new homes being built and new neighborhoods are coming up. But many are wondering if it’s still a good time to keep building homes regardless of where the real estate market is headed. This is especially true as lumber prices are reaching all-time highs, and inflation has caused all of the other materials to also rise in cost.
But, the one thing that those building homes have on their side is time. The sooner you can break ground on a new build project, the better chance you have of getting it for cheaper than it would be in 6 months. Homes are also an investment. If the value of your new home were to go down in the next year or two, you’d still be holding that value until it does increase over time.
Contact Sustainable 9 to Get Started
We have quite a few available building slots for those looking to break ground on their own custom home. Check out our website to see some of the different projects we’ve completed and to contact us. We’d love to hear from you and help you get started on the process of building your dream home.