Not many of us want to look in the rearview mirror on 2020 – so many ups and downs across the globe. Even in the Twin Cities real estate market, it was full of ups and downs. This graphic gives you a quick look.
What Made 2020 a Roller Coaster?
Buyers were jumping in....!
- Record low-interest rates – still under 3% from many lenders
- Work / Home balance was challenging – need more space and dedicated workspace
- First time home buyers wanted to get out of rising rents
Sellers were making cheddar…..!
- Median home sale price rose 8.9% - record low inventory with strong buyer demand drive home prices higher
- More time on their hands, able to make home improvements that attracted higher sale prices and buyers
What was challenging?
- Record low available homes for sale, left many buyers frustrated and missing out
- In some listing price points (under $400K), high buyer demand resulted in multiple offers within 24-36 hours of the home hitting the market. Truly snooze you lose!
- Buyers can’t move fast enough from showing to offer
- Covid-19 changed the way you search – heavy ‘virtual’ tours with high-quality pictures, drive-bys before people enter the home
- New showing best practices for the safety of everyone restricted who could enter the home for showings and limited Open House opportunities for buyers to do a little shopping on their own.
2020 Home Buyer and Seller Profile Via MNRealtor.Com
What does 2021 look like...?
Experts do not feel there is a concern for another "housing bubble":
But unlike the real estate boom that led the Great Recession, this nationwide price spike is not being fueled by a wholesafle collapse in lender ethics. THere aren't any low-doc or no-doc loans to be had and borrowers are having to do much more than fog a mirror to get funding....
Supply and demand fundamentals can also fuel rising prices" - Excerpt From USA Today, Michael Braga, Febraury 9th, 2021
2021 Predictions:
- Local real estate experts are predicting the first half of 2021 to be similar to 2020
- COVID-19 protocols will remain in place. Everyone's safety is a priority.
- Demand will most likely continue driving sale prices up, however, not as much as 2020
- Interest rates will remain low, possibly inch up in 2nd half
- As COVID-19 infection rates drop, anticipate more inventory to market late Spring/Summer
Is 2021 the year for you to sell or buy a home? Do you know someone looking to make a move? If so, please contact me at nanci@berglarsengroup.com or 612-925-8401. Berg Larsen Group has decades of experience in the Twin Cities market, we’re proven and we care. Recognized as a Minnesota top ten real estate team.
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Coldwell Banker Realty | Minneapolis Lakes Office
3033 Excelsior Boulevard, Suite 100
Minneapolis, MN 55416
Office: 612-925-8411 | Fax: 612-924-4308 | GetInfo@BergLarsenGroup.com
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