Are Real Estate Prices Going Down?
That is a very broad question to ask because every city in every state is different. Break that down even further and every county and suburb is different. In the Minneapolis-St. Paul Metro area I can tell you a couple of things that are factual. This information might help you to view the market through trends to answer the question for yourself.
In January 2014 the median sale price of a home was $192,000. Fast forward to September 2017, the median sale price was $242,500. That’s quite a jump in little under four years. Part of that is still the recovery aspect of all that was lost in 2009. But to take a little bit further if you look at June 2017 the median sale price was $257,125 compared to September 2017 at the $242,500.
When you break it down into quarters or even monthly, you notice a pattern. Some years are different but over all in Minnesota the majority of the gain in value happens between March and June of any year. That’s the spring market rolling into summer. Historically prices start to level off and take a bit of a drop in early August. We may see some short little spikes in September maybe even in October depending on the weather and other aspects like amount of inventory. But having said that values typically decline through the end of the year.
Looking at this data a case could be made that purchasing a home between October and February is the best time of year to buy. More than whatever the average median sale price is, the larger concern is a buyer should be what your interest rate is. The higher the interest rate the less home you buy for the same payment. That is a bigger buying factor to me as a real estate agent when working with my buyers than the current price of the home. Real estate fluctuates just like stock. It goes up and then it goes down. But throughout history it’s always gone up over time.
If you live in the Minneapolis-St. Paul Metro area and you have any questions about buying or selling a home please contact Tom Sommers 952-994-7204.
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