29 Dec Experts weigh in on Minnesota real estate in 2023
Experts weigh in on Minnesota real estate in 2023
The experts say homes sales in the Twin Cities are expected to be about the same as 2022, this is regardless of higher interest rates. It is predicted home sales will slow more nationally then in Minnesota.
New construction will feel the biggest impact. Builders started too many developments and have some spec homes yet to sell. Look for buying incentives like discounted interest rates, seller paid closing costs and other extras like them finishing the basements.
Realtor.com predicts The Twin Cities metro area will be down .8% for sales in 2023 compared to 14% nationwide.
Listings will continue to be at a short supply in 2023, since we currently only have a two-month supply of homes for sale.
Prices in the Twin Cities will continue to rise (the doomsayers are clueless – our economy is based on supply and demand). Will not see the bidding wars that impacted Minnesota in the first half of 2022. S&P CoreLogic Case-Shiller report said home prices in the Twin Cities increased 5.9% from the previous year, compared to the national average of 9.2%. The reasonable appreciation helps shelter us from the “value bubbles” that many regions experience on a regular basis. Realtor.com predicts the Twin Cities will appreciate 5.6% in 2023.
Mortgage rates will be less volatile in 2023 and that will give stability to the real estate market. With rents expected to rise faster then home values buyers will still be very active in this market.
Buyers like the fact that they are not paying 50K over asking price in bidding wars like we had last spring and summer and can get the home at a more reasonable value at a good rate (currently about 5.5%). They can then do a no-cost refi in the future when the rates go back down after the Fed has gotten inflation under control.
I’m available to talk further about 2023, just call, text, or email me.
The Anderson Team