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Minneapolis Real Estate Market for Summer 2021

Updated July 17, 2021
Chad Hanson
Chad Hanson

As the Managing General Partner at Sustainable 9 Design + Build, Chad is responsible for establishing the vision and strategy for our clients. What helps separate Chad from other visionaries in the home building sector is his ability to create a unique customer service experience that is both highly personalized and encourages collaboration. Chad’s experience and expertise in the field makes him a pleasure to work with and an all-around expert in Minnesota Modern.

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 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.

Market Trends Summer 2021

As you probably already know, the market in 2021 is hot. We’re not talking about the weather when we say hot (it’s been a warm summer already). 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 homes.

Grey home for sale with sign in yard.

A Sellers 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

COVID-19 made everyone more keenly aware of family and what truly matters. This carries over into the 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. 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.

Minneapolis Real Estate Market for Summer 2021 1

As they say, supply and demand work together to determine the 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 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 going up. But many are wondering if it’s still a good time to keep building homes. 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.

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Chad Hanson
Chad Hanson

As the Managing General Partner at Sustainable 9 Design + Build, Chad is responsible for establishing the vision and strategy for our clients. What helps separate Chad from other visionaries in the home building sector is his ability to create a unique customer service experience that is both highly personalized and encourages collaboration. Chad’s experience and expertise in the field makes him a pleasure to work with and an all-around expert in Minnesota Modern.

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