It’s been a wild ride this year, and our nation has truly seen its fair share of ups and downs. Amidst the many challenges we’ve navigated through, the Twin Cities real estate market is continuing to grow and remain strong heading into Fall 2020. According to the Minneapolis Association of Realtors President, Linda Rogers, “Most areas saw sales growth and other improvements, including both large core cities, where buyers continued to outbid each other”.
Despite the global pandemic and post riots, homes sold for 100.8% over asking price.
The U.S. homeownership rate rose again, signaling great strength in the recovery of the housing market. An indication that even during a time of crisis, Americans still are very confident about purchasing a home! A number of reasons factor into why the homeownership rate continues to rise. One of the biggest factors is historically low mortgage rates. Rates have been hovering at all-time lows and are helping drive affordability for today’s buyers. In addition, many homeowners are reevaluating their current living spaces and are using this extra time at home to search for new homes that would offer more space such as an office or larger yard.
There is a very strong buyer demand as well, seen in the number of pending sales (accepted offers). Today’s market is an optimal environment for homeowners who are ready to sell their homes and they are receiving top dollar. Sellers have the upper hand because there is a limited supply of homes for sale, and the Twin Cities has thousands of eager, prospective buyers ready to find a home. It’s giving sellers the advantage in price negotiations and netting the most amount of money from the sale of their home. Today’s homeowners are, on average, staying in their homes longer than they used to as well. This is another key factor driving increased homeowner equity. When equity in a home grows, selling a house becomes increasingly desirable.
Here is a breakdown on why it’s a great time to capitalize on equity gain in today’s market according to 2020 U.S. Home Sales Report:
“Home sellers nationwide realized a gain of $75,971 on the typical sale, up from $65,500 in the first quarter of 2020 and from $65,250 in the second quarter of last year. The latest figure, based on median purchase and resale prices, market yet another peak level of raw profits in the United States since the housing market began recovering from the Great Recession in 2012.”
A great first step is to determine your equity position on your home. This will help you understand how much equity you’ve earned over time. One of our teams’ Expert Listing Specialists would be happy to sit down with you for a no pressure virtual or in-person consultation. To schedule your appointment simply fill-out this form or give us a call at 612-812-9262. If you have any other questions regarding the Twin Cities real estate market please reach out as well, we want to continue to be your trusted real estate experts to any of your home buying or selling needs!