Some experts have suggested that this market is a new bubble, and that we are about to be in big trouble, ala 2008.
The lack of balance in this market is primarily if not solely due to the lack of inventory. Lots and lots of people want to buy homes and have the (legitimate) means to do so.
The riffraff and loopholes are pretty much out of the mortgage system, so we don’t have to worry about bad loans like we did during the Great Recession.
The employment rate is strong and steady; the economy is fundamentally sound.
So why are there SO MANY more buyers than sellers?
I have a few theories. Foremost is the lack of available homes for sellers. People don’t want to put their house on the market until they know they have a place to move. This is the start of a vicious cycle. I tell my clients to sell first and their new house will appear, but so far, no takers.
Second, millennials are entering the market at a much higher rate than previously. They finally have steady jobs in this good economy, have enough saved for a nice down payment, and are positive about the future.
These guys are competing to some extent with the downsizers, especially for the mid-century ramblers. which are affordable for the millennials and coveted for their one level living by the downsizers.
So, what price ranges are in demand? ANYTHING under $300,000 is selling very very quickly. Over $400,000 takes a bit longer, but still faster than in the past.
Townhomes go in a day.
Most single family homes, particularly in my sweet spot of ISD 196, are in very high demand because of our awesome schools.
One level living, whether townhomes or the mid-century homes mentioned above, are HOT, and will be for some time.
Location is critical, too. Richfield, Mendota Heights, Eagan, Bloomington, South Minneapolis, even South Saint Paul, are the places to be (or sell) this season.
If you have a home in any of these price brackets, areas or styles, PLEASE let’s talk about selling. I may even have a buyer before we put it on the market! You will be doing a buyer a huge favor by paying it (your home) forward!