Explaining why the current buyer’s market in Minnesota is fantastic.

Why is the buyer's market in Minnesota the best one that we've seen for over 10 years? When inflation was running rampant, the Federal Reserve stepped in and froze the market by raising interest rates to 4% in a year. In addition, the majority of people thinking about transacting in 2023 are either getting their homes ready right now for the spring market or waiting until the snow melts before listing. Mortgage application rates also dropped by 90%, which meant many people did not want to buy houses.

The reason why it has been an amazing buyer’s market is that the sellers that are out there right now are motivated. They are more willing to negotiate sales prices. However, as we get into our traditional spring market in Minnesota, there may be a lot of excitement.

You can always refinance your mortgage, but you can't refinance the purchase price.

Not very many people want to make their move in the winter, but keep in mind that rates are starting to drop again, and they're normalizing, which we think will hit somewhere in the 5% range by the end of the year. That window of time is starting to close very quickly, and if you're an investor looking to purchase, now is the time to do it rather than waiting six more months.

We're actually starting to see multiple offers return again because the smart buyers know what's coming in the future, and they’re the ones in the market right now getting those deals. Remember, you can always refinance your mortgage, but you can't refinance the purchase price. So if you're in the market and you're looking for a deal, now is the time to solidify that deal.

If you have any questions about this topic, call or email me. I’m always happy to help!