The Twin Cities housing market has experienced some interesting trends in 2017. Our team has fully experienced the up’s and down’s for our buyers in this fast paced market. Now that we are in the second half of the year, here’s a recap of what Buyer’s have experienced so far.
What People are Buying
The $200-275K range has been extremely competitive for buyers so far in 2017. It is not unusual to see multiple offers come in on a property in this price range within the first weekend. We personally have had homes in that range that have received 7-12 offers with up to 40 showings from Friday to Sunday on a single property.
While this may seem a tad intimidating if you are in this price range, there are a few things that you should keep in mind as a buyer. Many people do not want to end up in a multiple offer situation, however, if you do not write, you have zero chance of getting the property. Do not let being in a multiple offer situation discourage you! If it’s the home you’ve been looking for, be competitive with your offer!
When looking at homes, only set up appointments to see homes that you really believe will fit your criteria based on the information you receive from the search. It isn’t always the best use of your time to look at a home that you don’t actually think will be a good fit for you.
Where people are buying
The most popular areas in the Twin Cities right now are the areas with plenty of homes in that hot price range of $200-275K, and are within close proximity to amenities and transportation. These includes easy access to the city and shopping areas for home buyers.
The market is moving a little slower for the areas that have higher prices than the hot price range right now. Neighborhoods that have homes priced at that price or above may be on the market longer and has a smaller pool of buyers, however, it is still moving at a quicker pace. If you are buying in that range, you may have a little extra time, however, it’s still best to look with intention and decisiveness!
In a quick paced market, the first thing that a buyer should absolutely do is meet with a lender and get pre-approved before looking at homes. If there are any hiccups in the approval process, a buyer could lose out to on a home if there is another buyer that is already qualified. This also prevents the buyer from wasting their own valuable time on homes that they may not be able to afford.
Have a clear list of “must-haves” and “would be nice to haves”. This will narrow down the search for the buyer and will help filter out homes that do not meet the requirements.
If you are looking to “move up” and sell your current home – this is a fantastic time to do so! Especially if your home is in that $200-275K price range that is flying off the market right now. As previously stated, it is likely that there will be a slightly higher inventory for the higher up prices, allowing more options when you do sell your home. Plus, you may get multiple offers on your current home or at least one very quickly after going on the market, allowing you to accept the best possible offer for your current home.
Before buying a home, any first time homeowners should remember to consider that there will likely be other expenses – a home will have to be filled with furniture, kitchen supplies, and landscaping items! But that’s not all – you should plan on paying for closing costs and property taxes.
It’s also not a bad idea to try to have about 3 months of living expenses in a reserve in case something unexpected happens in your home (this rule of thumb applies to renters too!). Make sure to leave room in the budget for these items for when you pick your new home.
If you are first time home buyer, or it’s been years since you have bought a home, the process may seem a bit overwhelming. However, find a great agent that you trust to work with. They will walk you through the process and help you through the steps to buy your next home!