Your Minneapolis Area Real Estate Predictions for 2018
Now that we’ve rung in the New Year, it’s time to look ahead at the months to come. In 2018, there are all sorts of real estate trends on the horizon—some familiar, and some brand new. To get a sense of where you stand as we long toward the spring and summer selling (and buying) seasons, let’s consider the 2018 real estate forecast here in the Twin Cities area.
New inventory will be added.
One of the reasons that homes for sale in and around Minneapolis earned top dollar in 2017 was there was a relative shortage of new properties on the market. In 2018, builders will begin catching up with buyer demand, as far more new construction properties will be added to the market inventory. This means a more competitive shot for introductory buyers, while sellers can still rely on a good return on their initial investment.
Minneapolis will continue to boom.
As major metropolitan centers on the East and West coasts continue to boom—think San Francisco, Los Angeles, Seattle, New York, Boston, and the like—many expanding families and young professionals are headed to booming creative cities like Minneapolis and St. Paul to set down roots. This means economic prosperity in the region, as well as the local housing market, will continue to reach new heights as 2018 continues.
Mortgage rates will increase, but only by a small margin.
Post-recession, mortgage rates have been fixed at historic lows for several years. As the housing market and economy stays steadfast, it’s normal to expect small adjustment in the mortgage interest rate to account for growth and inflation. Buyers can expect an average interest rate around 4.5% throughout the year, give or take.
More Millennial buyers will enter the market.
As more and more Millennials come of age, find steadier work, and begin to shed some of that famous student loan debt, the American Dream of homeownership will become a more attractive possibility. This means a higher demand for starter homes, urban condos, and amenities that Millennials demand—outdoor space, contemporary fixtures and design elements, walkable neighborhoods, and more.
No matter what your real estate goals are for 2018, the best way to prepare for the year ahead is to partner with a knowledgeable, experience real estate agent here in the Minneapolis area. Our team has worked with hundreds of buyers and sellers throughout the Twin Cities metro area and its many idyllic suburbs. Whether you’re buying your first home or a dream home, or selling a property and beginning a new chapter—get a sense of where you stand in the year ahead. Give us a call today.
At Helgeson Platzke Real Estate Group, we are proud to be a member of Eden Prairie’s esteemed small business community. Since 1995, we’ve offered the very best in Twin Cities real estate, earning our community’s trust as the #1 Sales Team in the Eden Prairie area. With over 4,500 homes sold, our staff has both the knowledge and experience necessary to ensure that your home ownership goals are delivered. So, if you’re considering buying or selling your Eden Prairie area home this summer, now is the time to enlist the help of a real estate professional who can help you make the most of this season’s extraordinary market.