Buyers Are Back… But Rates Are Complicated

In Minnesota, the unofficial start of the spring real estate market usually begins right after the Super Bowl, and we’ve already seen a flurry of activity. Both sales and inventory are slightly up year over year, which is a good sign as we head into the busy season.

Interest rates continue to be a complicated story. With tensions escalating in the Middle East, markets have been reacting quickly. Rates are currently hovering around 6 percent, which is still an improvement compared to the past couple of years. Many economists expect two to four rate cuts this year, but the recent spike in oil prices could limit how many we actually see due to inflation concerns.

Locally, new construction is dealing with a sudden labor shortage. It will be interesting to see whether that slows projects down or creates delays as the year goes on.

One thing that has not changed is how the best homes perform. Clean, well-prepared, and well-priced homes continue to sell quickly and often with multiple offers. Just this past weekend, a well-priced single-family home in the east metro received more than 15 offers.

Positioning your home correctly or preparing your offer strategy is still incredibly important in today’s market.

Thank you, as always, for allowing me to be your real estate resource.

Caleb

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