Homebuyers win an edge over sellers in Twin Cities real estate as both new home listing and pending sales drop, according to Minneapolis Area Association of Realtors stats. Insights from Twin Cities housing expert Home Destination, a residential RE/MAX Results Realtor, cover the report and why it gives home buyers the upper hand.
December 14, 2014 (Newswire.com) - Minneapolis 13 County metro home sales are grinding to a pace that gives home buyers the upper hand. Sellers who list their homes for sale seek to find a high price offer from buyers who continue to get pickier. Whether buyer or seller, working with a skilled local real estate agent removes some of the anxious moments of determining the market balance. Sometimes local real estate conditions benefit buyers more and sometimes they tip in sellers favor. Today, the housing market in the Twin Cities is more of a home buyers market, according to stats by the Minneapolis Area Association of Realtors (MAAR).
"One characteristic of the housing market is unpredictability. Even ardent Twin Cities housing experts may feel confident they will to sell a home overnight, and for some reason it seems to mysteriously sit on the market," says Jenna Thuening owner of Home Destination. "One week it may seem like home buyers carry the advantage and then the pendulum swings and the favor may seem to be in seller's hands. A strategic home buyer, who knows how to use their current market advantages, will find themselves in charge during a purchase offer".
Twin Cities new listing decreased 13.5 % to 436 and pending sales decreased 8.3% to 538, leaving home buyers more positive and enjoying the feel of the driver's seat. The outlook brightens as Millennial home buyers are expected to boost Twin Cities real estate according to recent predictions in the November 14th 3 Reasons Millennials Are Driving the Housing Market article by Realtor.com. Additionally senior single-family home buyers are aware they can accrue substantial wealth through appreciation in home prices. The return to a more balanced Twin Cities housing market has helps dim recent experiences of housing's tumble.
"There's kind of a hangover of inventory from the fall that isn't selling," commented Amy Jurek, sales agent with Re/Max Advantage Plus. "Buyers seem to be back in the driver's seat this winter. They have a decent amount of properties to choose from with amazing interest rates." With the number of real estate listings growing and home sales sliding, bargain homes can be found if you know where to look.
Flucuations when there were fewer residential investors in the Twin Cities housing market - say around 13.4 percent of all closings - can open up a perfect time to buy a home. Other market swings may run upward near a 40 percent level of home investor purchases.
An ideal situation found today by many sellers is that their starter house purchased when house prices were low can now be converted into home equity that creates a sizable down payment on another home. Additionally, sellers can expect to find that active winter home buyers tend to have a more serious buyer intent to land a purchase agreement.
"When comparing to last November, it looks like a slow down, but last November was different because it really still had a range of pricing, so people were scrambling to grab those low-cost homes," comments Emily Green, president of MAAR. "We are moving back to a traditional buyer and a traditional seller, which are those who really prepare for a purchase for months."
"First-time buyers have a better chance of purchasing a home now that bidding wars are receding and supply constraints have significantly eased in many parts of the country," said Lawrence Yun, chief economist for the National Association of REALTORS®.
Market conditions are considered more balanced when traditional home buyer and a traditional seller activity seem to be equal. Home buyers in the Twin Cities find it a profound advantage when they have sufficient control in the process of negotiating a home purchasing offer. Even price-sensitive homebuyers are enjoying a few months of market control as seasonal activity waits for spring before inventory typically picks up. Being a winter home buyer can mean being in the driver's seat with a solid chance to gain a home at a discount.
"Post phoning a home purchase until spring may mean facing a multiple-bid scenario," hints Thuening.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in the Twin Cities. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all types of home buyers and sellers, Jenna Thuening has the real estate experience and acumen that makes the difference in successful housing transactions.