Spring Time Real Estate Buyers are making their Move
Ah, Spring – a time when a person’s fancy turns to thoughts of…buying a home?
In the Spring of 2015 in Twin Cities Area Real Estate, it’s shaping up that way! After being cooped up all winter, people are eager to get out there and find their dream home. But there’s even more to it this spring.
The Twin Cities housing market is enjoying a strong start this spring due in part to our improved local economy coupled with currently favorable interest rates.
Rents have been on the rise. They’ve gone up enough to get renters to lean toward homeownership again. And with mortgage rates remaining low, renters are feeling it’s time to invest in something beyond a 12-month lease. Confidence in the housing market is also up among renters in the Twin Cities. One study found that 49,156 renters in the Twin Cities plan to buy in the next year.
Minneapolis Area Association of Realtors data shows new listings increased 23.2 percent to 5,690 in February, the largest year-over-year increase since July 2013. Pending sales also jumped by 21.8 percent to 3,834, marking the largest pending sales number in February since 2005.
Spring time in Minnesota always brings a sense of a fresh beginning, renewal, and overall optimism. It’s not just Spring Fever that things look brighter for Buyers, it’s the market conditions. “A big thing is buyer confidence is improving because they’re watching the conditions of the market,” said Pat Paulson, past president and current treasurer of the Minneapolis Area Association of Realtors, “The market is improving. The trends are up!”
Buyers have also been keeping an eye on the conditions of the economy. According to the Bureau of Labor Statistics, the Twin Cities has the lowest unemployment rate of any major metro in the nation.
Prices are on the rise. So now is the time Buyers have been waiting for so observantly. Buyers are buying now for two reasons: get a good price before they go up further, and with the expectation of those price increases to add value to their home over the next few years. The thinking is there will be increases, and buying now gives them an investment advantage. At worst, those increases will turn out to be only modest.
Whether looking to invest, move up to a bigger place or no longer rent, for the Twin Cities Spring 2015 is definitely your time to spring into action.