Big changes in your life can be overwhelming, and often times people wait and wait for the “right” time. In most cases, there is no “right” time for any big change in your life! If you wait for the right time, you may miss a great opportunity.
While there are many factors that go into the decision to buy or sell a home – the one we’re a part of is the housing market! And if that’s what you’re looking at, then right now looks to be the “right” time to make the leap!
The market is LOW, LOW, LOW on inventory right now. In fact, we are 18.8% below the inventory from last year! There are a few things contributing to this low number, the first being, of course, the current pandemic happening in the world. While we have adapted our business to accommodate safe spaces, there are still some that would prefer to wait to allow people in their home!
The second is a little more surprising. The average length of time homeowners are staying in their homes has increased by 1 every year for the last 9-10 years. This means, people have built up much more equity in their homes.
Thirdly, homes are going FAST and for a high price! The average price in the Twin Cities a home is selling for is $348k – that is the highest we have EVER seen! Better yet, the average days on market is 18 (info straight from NorthStar MLS). Lastly, homes in the Twin Cities are selling for 100.4% of their list price! So sellers, you’re looking at higher prices, fast sale, and full price!
Two Words: Interest Rates!
Although we are in a seller’s market, buying a home has never been more affordable (in a normal market)! Right now, we are the green bar in the chart below that shows affordability index from the last 20 years (the higher the index the MORE affordable). The other chart shows how interest rates compare over the last 40 years. Interest rates fell BELOW 3% earlier this month for the first time in 50 years! With such low interest rates, buyers are able to get more for their dollar.
In conclusion, if you’re ready to take the leap, the housing market is ready for you! It is definitely the “right” time to buy or sell in this market! Reach out with any questions – we’re happy to answer them and help you along the way in your home buying/selling process.
And if all of this hasn’t convinced you that it could be the right time to buy or sell a home, Real Estate has been ranked the BEST investment for the 7th year in a row!!
Information from NorthStar MLS InfoSparks & Keeping Current Matters