Known as the “Land of 10,000 Lakes,” Minnesota is home to the Mall of America — the largest shopping mall in the United States — and promises endless outdoor activities, including camping, fishing, hiking, biking, and winter activities. There is no shortage of wildlife, including turkeys, bald eagles, deer, beavers, and loons, and it is one of the only states with moose.
If you are interested in making Golden Valley your new home, let’s take a closer look at the housing market in the Minneapolis area. The housing market throughout the
state mirrored the overall U.S. housing market in 2020 and 2021, experiencing an influx of bidding wars and rising home prices. In the post-pandemic world, the real estate scene has been leveling out across the nation. The Minneapolis housing market has experienced highs and lows in the past few years and is currently predicted to continue favoring sellers and landlords.
The Minneapolis area housing market forecast 2023
According to the
latest data from the Minnesota Realtors, the median sales price throughout the Twin Cities is currently $372,000, which s about 1.6% less than the year before. Year-to-date, the median price has experienced a 0% change, indicating that prices are holding steady throughout the area.
The Twin Cities, like most of the rest of the nation, has experienced a slowdown on the housing scene, with pending sales decreasing by
19.4% and closed sales by 28% from May 2022 to May 2023. New listings are also down by 18.3% since last year, and homes are spending 17.4% longer on the market before selling.
Overall, the inventory in the Twin Cities region has increased by 21.4%, primarily due to buyer hesitation because of interest rates and inflation. It’s important to note, however, that home sales have picked up over the course of the year as we move into summer, from only 1,776 closed sales
in January 2023 compared to 3,359
in May. Homes are also selling much faster in May compared to January, mirroring the acceleration of the market that typically accompanies the spring and summer seasons.
Goldey Valley real estate
As of May 2023, the median sales price increased each month, which is a typical trend in Minnesota as the spring season begins and the weather improves.
Homes for sale in Golden Valley, Minnesota, command a higher price point than the Twin Cities as a whole, with a
median sales price of $477,500 (a modest 7.3% rise from last year). Most of the homes on the market sell for their full listing price and typically sell within 38 days. There are approximately 1.7 months of inventory available, which is an increase over last year. Closed sales are also down by 27.7% compared to 2022, mirroring the Twin Cities area as a whole.
Increasing interest rates
Both homebuyers and sellers are adjusting to
higher mortgage rates, which have increased to 6.5% on a 30-year fixed mortgage, compared to the much lower rates offered in 2022. Housing in Minnesota is expected to be more affordable if inflation and interest rates stabilize or fall in the coming months.
In Minneapolis, the average 30-year mortgage rate is
6.79%, which has increased 1.7 points in the last year and is approaching its 15-year high. This increase has led to higher mortgage payments, contributing to buyer hesitation as a whole.
Negative net population migration
In 2022, the
number of people living in Minnesota grew by approximately 5,700 people. The population growth in 2021 and 2022 stalled as the number of people leaving the state continued to outpace new arrivals.
Typically, Minnesota experiences annual population growth, as the state typically saw over 35,000 new residents in the past. The decrease in population is attributed to fewer births, which has been trending downward for many years. Census data indicate that 4,000 residents left the Twin Cities between April 2020 and July 2022.
Minneapolis housing market trends 2023
Median home prices 2023
According to the NAR, the median home price in Minneapolis-St. Paul-Bloomington is on par with the nation’s median as of the
first quarter of 2023. While prices in Golden Valley real estate trend higher, you can see that the area offers an amazing quality of life. With just 1.7 months’ supply of inventory available, homes receive a high level of competition amongst buyers.
How to buy a home in the current market
Navigating a competitive housing market is quite a challenge. Thankfully, working with a trusted agent eases the stress because they know the real estate market in Golden Valley and can connect you with properties that check all the boxes. Whether you’re buying or selling a home, teaming up with a trusted agent is your key to success. They will help you devise a strong offer or sell your property for the highest profit.
The Minneapolis real estate market: should you invest?
As mortgage rates decline from their peak and the housing supply remains low, sellers are still experiencing bidding wars for their homes when they are priced accurately and reasonably. With the supply of housing declining as a whole, there are many proposals to increase affordable housing in the area, allowing investors to be involved in rental properties.
Additionally, larger houses can be converted into multi-family homes, allowing the owner to live in a portion of the home while renting out the remaining space. The U.S. News Housing Market predicts the number of
multi-family permits will remain steady through August and that the number of single-family homes will decline. They also expect that the median home price will continue to increase as the number of houses on the market remains low despite the reduction in closed sales.
If you are considering a move to Minnesota, the
Laura Tiffany Group is ready to help you find a fantastic new home in
Golden Valley real estate. This knowledgeable team offers insightful advice about the housing market, invaluable resources, and exceptional marketing strategies to sell your home quickly or find your dream property. If you are ready to explore the Minnesota real estate scene,
contact the Laura Tiffany Group today.
*Header photo courtesy of Shutterstock
