Home News Twin Cities housing market slows even more, and buyers gained a slight edge last month

Twin Cities housing market slows even more, and buyers gained a slight edge last month

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Twin Cities had more sellers than buyers last month, giving house hunters the most options in months.

According to Minneapolis Area Realtors, buyers signed 3,611 purchase agreements during October, down 37.7% from last year. Closings were down 33.5% for him, reflecting deals closed two to three months ago.

Residential listings have also declined, down nearly 20% compared to last year. Homes sold on average in just 36 days, and their median sale price rose 4.7% to $356,002.

Sturdy homes have taken longer to sell than they did earlier this year, and prices have risen more moderately. With only 1.9 months left in stock, it’s still a seller’s market in the Twin Cities. The market is considered balanced between buyers and sellers when there is a supply of 4-6 months of inventory.

Still, with 30-year fixed-rate mortgage rates hovering at just over 7%, about double what they were a year ago, buyers should adjust their budgets and expectations.

Redfin said today that a typical homebuyer in Twin Cities last month needed $96,602 in income to buy a $359,000 home, up 45.3% from last year. His monthly mortgage payment for that house will be $2,415, compared to his $1,662 last year.

Nationwide, the typical buyer needs to earn $107,281 to pay a $2,682 mortgage each month on the average home, compared with $73,668 a year ago.

The situation is becoming more and more perplexing for buyers.

“Sellers have more control than they should,” said Arlisa Bullock, a first-time buyer of Twin Cities. “Their days will not last long.”

Brock has been preparing to own a home for several years, but in some ways it wasn’t ready to meet the expectations of many sellers today.

PRG’s Homestretch program helped her build credit and budget. She worked on her Habitat for Humanity homebuying program and was able to lock in a lower mortgage rate than is currently available. .

“It took a long time to come,” she said. “I did a lot of footwork.”

The block rents a duplex. Her rent, which is higher than her expected mortgage payments, recently increased. She wants to spend less than her $300,000, but she is eligible to spend more than $385,000. She wants to buy in one of her northern suburbs and is considering two-family homes and single-family homes.

“I see all the possibilities out there,” she said. “I’m looking for something that lets me be myself.”

She started shopping in earnest in August and has seen some homes that fit her needs, but is waiting for sellers to be a little less greedy and flexible with pricing.

“I have enough price points, so I have a lot of options,” she said.

She made several offers, but found that the sellers were not willing to compromise on price or terms.

On one occasion, the house met her needs, but was so close to the highway that the road noise was deafening. She offered a slightly lower price than her asking price, but the seller rejected the offer and did not offer to the contrary. It took her three months for these sellers to find a buyer.

“Sellers have more say than they should,” she said. “Some people just don’t want to move.”

While the annual rate of decline in pending sales was the largest since 2010, sellers earned nearly 100% of their asking price during October.

Nene Matey-Keke of Compass, Bullock’s real estate agent, said while lower prices were welcome news for buyers, higher interest rates pushed many buyers out of the market. He went from having about a dozen buyers in the pipeline to five or he has six.

He said buyers were weighed down by concerns over the midterm elections, along with fears of rising interest rates and a possible recession. He hopes the post-election buying season will improve.

“Interest rates are important, but I think people are very preoccupied with all the other inflation at this particular moment. And you’re talking about a summer that’s in the air from a political standpoint.” People are saying, ‘It’s expensive to buy. My whole life has become more expensive. I don’t know where we’re going as a country right now.'”

He said sellers have to adjust their expectations too.

“If it takes three weeks to sell a house now, does that mean Armageddon? “Pricing the right price and giving a property a haircut and clean clothes makes it far more attractive than a neglected property.”

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