Is it too late for you to NET the most on your property?

The landscape of the real estate market took a sharp shift in the middle of Aug. and is starting to even out even more as the fall market goes on. The days of 10-12 offers, no inspections and/or contingencies may be over for now. The market's have stabilized in many markets across the United States, but I'am a Minnesota real estate broker so I'll focus on that; mostly. According to Zillow the national average of home prices have raised 18.4% and they are expecting them to go up another 15.4% in the next year, but is that really sustainable even with limited inventory and high demand? At what point do people start to get priced out of the market and have to become renters? The big picture is that real estate will continue to go up, but if you know or follow real estate, you know that the real data is on the micro scale and it differs from market to market.

According to the Minneapolis Real Estate Association year over year data from 2020 to 2021 we only closed 6.4% more sales than we did the previous year where everyone thought the world was ending and most of the year we spent locked down. The spring market of 2021 started in February when lock downs eased and people started shopping but a lot of sellers were not yet ready to let strangers walk through their homes; which caused a huge inventory crisis and the high demand sent prices sky rocketing, causing the medium sales price in the twin cities to reach $340,000. It's now the beginning of Q4 in 2021 and you may have missed the highest prices that our real estate market has ever seen before; although i could be wrong due too many catalysts that may be out of our control.

The taping of the fed is going to begin and this will start small interest rate hikes in the middle of 2022 which not only will freak out the real estate markets as they did back in 2018 when the fed started to raise rates; they will also price out lots of buyers out of the market. Myth has it that for every 1% of interest rates going up; the real estate values will come down 10%, so this me be the biggest reason why you may have missed out on the highest real estate values yet.

The good news is that you still have time because rates are still historically at their lows and there are still a few buyers lingering around that have been patient with the market and have been waiting for everyone else to get inside for the winter so that they could go shopping due to their leases expiring soon or their current homes getting too small due family changes. When you use any mortgage calculator it's better to lock in a 30 year mortgage with a low interest rate than it is to wait for rates to get higher and pricing to come down a little bit.

Even though the highest of the highs are over for now until we see what happens with our spring real estate market here in the twin cities and also in the country, but the data suggests that if rates go up; prices will have to come down. The good news in that you still have time...