The housing market in the Twin Cities has greatly improved in the past two years, and while we're not yet at the prices and rate of turnover we saw before the collapse, things are definitely picking up. As a result, as a homebuyer you might face the need to act quickly when you find a house you love, and you might need to make an offer at full price, or close to it.
In the Twin Cities condo sales category, which makes up much of the downtown Minneapolis market, prices last year increased 15.9 percent to an average of $146,000. If you're thinking of buying soon, keep this average price increase in mind. Interest rates are still very low, of course, and this can help you extend your maximum budgeted price. For single-family homes, which make up much of the Minneapolis market and surrounding suburbs, prices in the last year increased 7.3 percent to an average of $221,000.
We've seen competition increase on the buyers' side as well. Demand is up for lofts, condos and single-family homes, which means if you want to enter the market to purchase a new home soon, it's a good idea to get your finances in order first. In fact, many properties are being sold as pocket listings, which means they don't make it to the multiple listing system (MLS) market. And once you start looking for your home, anticipate that you might need to view the properties you like quickly so you can turn around with a quick offer.
It's a good time to shop for homes in the Twin Cities area, and with interest rates still very low, you can probably get a good deal on the property of your dreams.