Here's the news of the week and my take on how that might affect your buying or selling decisions:
Market Update
1) Interest Rates - with 30 year rates sitting at just under 6.5% and 15 year rates at 5.99%, you'd think that might stimulate buying activity. I just don't see that yet. Rates have certainly edged down over the past couple of weeks, according to Mortgage News Daily, but not enough to break the lull that's settled on housing sales. Financial people are now thinking the Federal Reserve Board is ready to reduce rates by another 0.25% - 0.50%, but that's not fully refected in mortgage rates yet.
2) Supply and Demand - both are down from levels we saw this Spring, but it feels like demand is softer than supply. That's affecting housing prices to the downside. Sure, the really nice stuff still sells in multiple offers, but the bid over asking is much lower than in the Spring. And, while there are still those competitive offers happening, they're not the bulk of the action. I'm seeing more and more instances of buyers offering less - sometimes considerably less - for homes that are nice, but not perfect. And that's certainly happening for homes that need work and are overpriced. Which leads me to ...
3) Home Pricing vs Offer Pricing - with supply down and demand down further, that's slowed the market quite a bit. Savvy buyers are deciding to take action on homes they've had their eye on and are making discounted offers more boldly now. I don't have a recommendation on how much below list price you should offer, because it's so house dependent. My advice to you, though, is that while you may have feared losing the deal last spring with a low offer, now's the time to take your shot. You're likely to be the only offeror for the next few weeks and sellers, seeing few to no offers on weaker listings, are more open to negotiating and settling for less. Go for it while you can! Because...
4) Supply and Demand - Part 2 - Supply IS still limited. There aren't enough homes for sale for this to be called a truly balanced market. Anything could tip this back into a strong seller's market again, so ... while demand is softer than supply (in my opinion), if you're ready to take action and make an offer, make it YOUR offer!
My Open Houses This Weekend
I'm hosting two open houses on Saturday, August 23. I'll be at a nice condo on Bryant and Lake in South Minneapolis for the early show and then at an encore presentation at a super nice story-and-a-half on Eleanor in the Highland Park neighborhood in Saint Paul. Here are the deets:
Saturday, August 23, Noon -2pm
2840 Bryant Ave S, Unit 406, Minneapolis, MN
$360,000 2 bedrooms, 1 bathrooms, 2 car underground garage, 1030 square feet
More info here: https://rem.ax/4fZDQJg
This unit is on the top floor & has no shared walls with neighbors! Don’t miss the views of downtown! Comfortable, low maintenance modern loft living. This unit has 10’ ceilings, a huge island with granite counters & cherry floors. With the open living spaces you'll enjoy ample natural light with big windows along two sides of the unit. It's a Wow!
Saturday, August 23, 3pm - 5pm
1651 Eleanor Ave, Saint Paul, MN
$559,900 3 bedrooms, 2 bathrooms, 2 car detached garage, 1622 square feet
More info here: https://rem.ax/4dVRKdW
Gorgeous storybook Highland Park listing in exceptional condition and meticulously well-kept. Featuring classic charm, wrought iron handrails, built-ins, original woodwork, coved ceilings, archways and gleaming hardwood floors. This one's a beauty!
About Mitch
Yes, I'm a Realtor in the Twin Cities servicing the larger metro area and western Wisconsin. I represent buyers and sellers (both very different skillsets, by the way) who want great service and positive outcomes! If you're thinking of buying or selling in the next 12 months, give me a call and let's talk about how it works, the market and what your dream home looks like to you.
Mitch
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