The housing market creates a ‘sense of urgency’
2:00 p.m.Saturday 22 May 2021
Home buyers in the Northwest Metro will have more options this time of year as the supply of housing increases. Demand increased last year as new registrations declined in part due to COVID-19.
Brandon Doyle, with the Doyle real estate team at Maple Grove and Re / Max Results, says the rush to buy a home this year means working around the clock.
“For our buying clients, we need to show a lot more properties. A lot of it is a sense of urgency, ”Doyle said. “You have to make sure you’re available at night and on weekends, because that’s when people want to see the houses.”
Doyle said inventory at Maple Grove was up 40% from April of last year. According to statistics from Minneapolis Area Realtors in Plymouth, listings have increased by almost 10%. Minneapolis-area real estate agents are also reporting that half of homes are sold within a week of listing. The group of realtors reports that this is the fastest turnaround in at least 14 years.
“A lot of houses will come out of the market on Thursday or Friday. They’re going to want to look at the offers on Sunday, ”Doyle said.
Demand is skyrocketing despite record prices.
Prices for Twin Cities metro homes have increased 10.5% from last year. In Maple Grove, prices rose 17.3%, Doyle said.
“It’s a combination of higher priced homes listed but also increased home equity at all prices,” he explained.
While supply has rebounded from before the pandemic, the increase in demand has been even stronger. Doyle suggests that buyers do their research on a home they like first and get a good offer as soon as possible.
“Most buyers have to make three to four offers. You have to lose a few to understand what the market looks like. You have to come over to ask, ”Doyle said.
Another major driver of demand is the historically low mortgage interest rates of 3%. Currently, the Twin Cities only have one month of inventory. Typically, four to six months is considered a balanced market. Doyle said the good news is that you can expect a lot more announcements this time of year.
“Salespeople constantly hear about how their neighbor or colleague got 40,000 on the list and multiple offers,” Doyle said. “Now they’re starting to think maybe it’s time for me to make this move too.”