Around the country, the real estate market is enjoying a strong and steady upswing. Here in the Twin Cities region, the housing market is performing exceptionally well, with June posting a ten year high in terms of median home sale prices.
Though we’re just past the halfway mark of 2016, it’s worthwhile to note some of the active trends that have been shaping the Minneapolis – St. Paul real estate market since January, as well as what might influence the coming months en route to 2017.
1. Historically Low Mortgage Rates
Because the Fed decided to hold off on raising interest rates at their most recent meeting, mortgage interest rates have remained at near-historic lows. This has provided ample opportunity to on-the-fence and first time buyers to make the move and take advantage of these limited window, outstanding rates.
2. Millennials on the Move
Thus far, 2016 has seen an increase in millennial and first time homebuyers, which has provided a welcome boon to an already active Twin Cities real estate market. In fact, according to a U.S. News & World Report feature, millennials are inclined to scoop up properties that require some DIY investments, after locking in those low mortgage interest rates.
3. Demand, Demand, Demand
One of the reasons that median home prices are climbing is because demand is high and supply is right on its heels, aiming to catch up. That means that selling your home in the Minneapolis and Eden Prairie areas nearly guarantees a quick turnaround and potentially top dollar—perfectly positioning you for your next home.
4. Increasing Rents
Perhaps this is another reason that millennials are beginning to buy—increases in rent prices are driving Twin Cities residents to purchase homes and put their money towards an affordable mortgage. Increases in rent are part of a larger national trend, and with the Twin Cities region growing exponentially, it’s a wise time to upgrade from renter to homeowner.
Summer 2016 has been a scorcher for the Eden Prairie and Twin Cities housing market. With autumn and winter ahead—and no guarantee that the Fed won’t raise mortgage interest rates soon—now is a distinctly promising time to own a home of your very own in the Twin Cities area.
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.