Is it still a buyer’s market today in Minneapolis St Paul? As experts in the Twin Cities real estate market, we get asked this question a lot.
The answer isn’t as simple as yes or no. Let me explain you might be surprised by one of the answers..
The State of the Market for Buyers in Minneapolis St Paul Minnesota
First off, it really depends on the property type and location.
Single-family homes in great locations that are priced well have been flying off the shelves. There’s a lot of demand in the market for certain areas, while others can seem like ghost towns. The three things that agents always say in reference to what makes a house desirable and sells well. Location! location! location!
Buyers are often looking for the same thing – to buy homes in good neighborhoods, access to transportation, shopping, good schools, close to work, etc. Properties that deliver all these are definitely a hot commodity. Sellers with a highly desirable property are in control of the market and will get top dollar when they sell their home. Also, on the other side of the fence, buyers tend to shy away from things that either influence the comfortably of the living experience in the home or elements around the house that leaves a bad taste in people’s mouths. For example, a house with a bad flow is a turn off for most buyers. Also, homes with a low ceiling, unusable basements, crawlspaces, or houses built on a slab. As for elements around a house that has buyers running is a house built near train tracks, Mobil home parks, dirty commercial areas. You get the picture.
But for condos and townhouses – especially those a little off the beaten path, or with some funky features – it can be quite a different story. Prices were flat in certain areas of Minneapolis St Paul manly north Minneapolis, but seem to be rebounding as the rental market increases.
Investment properties are in demand. The massive amounts of foreign cash flooding in to invest in US real estate have impacted the Inver Grove Heights market in unique ways. Large hedge funds have purchased tens of thousands of homes coming out of 2008 and continue to manage their inventory within the rental market.
Overall, anyone who has a strong position to pay cash for properties has been picking up the good deals in the marketplace. We are finding that even though the market is still overall good, there is always someone being foreclosed on by the banks and the backs are selling those homes again, mostly to Minneapolis St Paul real estate investors.
Lots of sellers are trying out speculative prices just to see if anyone bites, but most investors are walking away from deals that don’t pencil out. Investors are really only interested in homes they can fix up and either sell or rent for a profit.
Financing is still a major obstacle for buyers. Banks are requiring about a 720 credit score to even think about buying. It’s not uncommon for a traditional conventional loan to require a 20% downpayment to eliminate the mortgage insurance on most loans. It’s not uncommon for approved buyers to get their loans pulled right before closing escrow, although it’s getting better than it was just a couple of years ago.
Overall the markets remain incredibly polarized – there is a lot of action at the very top and the very bottom, with the biggest challenges in the middle. as always the good folks in the middle class are getting squeezed again.
Sound confusing? It is. But We Can Help.
There’s a lot of shakeup in the US economy still taking place, and the markets are moving fast in lots of directions at once. The stock market used to be a place to put your money, but not anymore. The feds are starting to worry about the market and have said they may be lowering interest rates again up to three times this year. That could be the writing on the wall for our economy.
We’re investing in Minneapolis St Paul because we believe in the whole twin cities community and the good people who live here. If you want to know how you can sell home to a professional home buyer and save money, reach out to us Minnesota Cash Home Buyers.
If you need to sell a property near Minneapolis St Paul, we can help you.
We buy properties like yours from people who need to sell fast in the whole state of Minnesota .