The spring market is in full swing in the Twin Cities metro area. According to the Minneapolis Area Association of Realtor’s January Report, what we are seeing in the market is really a repeat of years past. We will continue to see strong sales numbers through the spring due to historically low mortgage interest rates combined with the traditional swelling of consumer demand through the spring and summer.
One thing that is affecting prices more than usual this time of year is a dramatic drop in listing inventory. Inventory is down 42% compared to this time last year. We believe this is due to concerns about sellers being able to find a house to move into. There is likely also continued concern over COVID-19. We should see that concern at least ease as we head into the summer and more people are vaccinated.
We also expect to see more listings as we head into the summer as folks move into their completed new construction. New construction is estimated to be up 30% this year, as consumers go that route due to limited pre-existing supply. We will also see more listings from struggling landlords as the eviction moratorium and mortgage forbearance laws are lifted.
In short, it will be another great year in the housing market. If you are interested in talking more about buying or selling, please contact me at 612-269-1902, email@example.com, or fill out the contact card on my website!