New Home Buyers Hit The Twin Cities Market As Rent Prices Increase
The recent housing affordability analysis by Zillow showed that the price of renting in the Twin Cities metro area is reaching historically unaffordable levels. On average a renter in the Twin Cities can expect to pay 25.6 percent of their income each month in rent, in the past we have seen this at 19.7 percent.
As a result of this increase more renters are choosing to buy a home. Historically 19.8 percent of a buyer’s monthly income went towards their home mortgage, where today the number is 13.7 percent. However, mortgage interest rates are expected to increase in the months to come. If we see mortgage interest rates increase to 6 percent, then on average a home buyer in the Twin Cities area will be spending 17.5 percent of their monthly income on their mortgage.
We are already seeing more buyers who had previously rented entering the market. According to the Minneapolis Area Association of Realtors home sales increased by 17 percent last month when compared to year over year numbers. Buyers are encountering a limited supply of homes for sale as inventory levels remain low. Now is the perfect time to sell your Twin Cities home.
If you are looking to buy or sell a home this summer contact me. Our group specializes in Eden Prairie Real Estate,Chanhassen Real Estate,Chaska Real Estate,Lake Minnetonka Real Estate,Edina Real Estateand West Bloomington Real Estate.
Brace Helgeson Coldwell Banker BurnetLicensed in Minnesota/Lic # 92065