Advantages Can Be Leveraged by Both Twin Cities Home Sellers and Buyers In 2014: Historical Twin Cities Home Price Growth Rate: Not only did more homes sell last year, they were selling for more money.
January 28, 2014
Minneapolis home prices are closer today to historical averages as home buyers expect a strong future as levels of historical home price increases. Minneapolis median home sales price increased 13.7% to $191,000 according to the Department of numbers report. Economists have been saying that the housing market is healing; today many people are truly believing it because prices have been catching up with historical averages.
Prospective homebuyers who sat on the sidelines and waited to buy a home in 2013, may now be wishing they had done so last year. Home prices climbed nationally an average of 13.6 percent in the past 12 months, according to Tuesday's release of the Standard & Poor's/Case-Shiller 20-city home price index. The Twin Cities metro had an even stronger market. The median closed sales price of a home in the 13-county metro area jumped 14.4 percent to $192,000 according to data from the Minneapolis Area Association of Realtors (MAAR).
However, it is still a great time to buy a home with home prices predicted to climb further in 2014 as well as the combination of very reasonable interest rates. Housing market experts predict that 2014 will be another year of steady gains for the real estate market, even though the brisk pace of 2013 home sales was tempered slightly with seasonal adjustments at the end of the year.
We can count on at least the fact that 2014 will be an interesting year for the Twin Cities real estate industry. The metro's housing recovery will continue to spread deeper into the thirteen counties that make up the metro's core. Some cities will see home-price appreciation levels stronger than others, with a new set of mortgage rules coming into effect. Here's a list Home Destination's housing market predictions, projections and expectations for 2014. Housing demands in much of the 13 county metro area remains relatively strong, partly due to stronger job growth.
6 ADVANTAGES TWIN CITIES HOME SELLERS CAN ANTICIPATE IN 2014
Any time of year can create a seller's advantage when selling your Twin Cities home – provided you have a skilled Realtor who understands the Twin Cities housing market! If you’ve been thinking about selling your home this winter, buyers are seeking listings and if marketing a home is done right, Sellers have several advantages now and throughout 2014.
Increase In Home Prices - Home selling prices are predicted to continue their upward trend. Sellers are able to anticipate stronger home prices after watching on the sidelines for just such a time as this. The uptick in Twin Cities home prices has pulled many sellers out of negative equity status, which permits an easier path when selling one home and moving to another. Twin Cities home sellers can gain a tactical advantage over their competition by conducting a thorough home price range analysis; often sellers are failing to complete this critical process.
Increase Home Equity - When Twin Cities home sellers can list a home and gain top dollar, that offers them the possibility of having transferable equity to use towards a higher down-payment to buy another Twin Cities home. In 2013, the metro's shortage of real estate sellers has driven Minneapolis - St Paul home prices upward as prospective buyers jostled for a dwindling supply of houses.
Stronger Home Sales Activity - Kiplinger's Economic Outlooks predicts that nationally we will see existing homes up 4% in '14, new ones up 16%. Last year the metro ranked higher than national averages in nearly all aspects of real estate rankings, offering seller's much to feel positive about. Stronger home sales activity helps sellers list, and close on a home within a shorter time frame, which makes the process of keeping a home spotless for showings much easier, and allows sellers to focus more on packing and preparing to move to their next home. Read more about Kiplinger's housing predictions for 2014.
Low Interest Rates Working In Seller's Favor - Excellent short-term interest rates will remain low during 2014, given Federal Reserve officials’ announced intention to keep the Fed funds rate near zero until a sustained economic pickup is substantiated. Signs of increased hiring and job security point to a better-performing economy in 2014. "At a historic low, between zero and 0.25%, since December 2008, the short-term Fed funds rate won’t rise significantly before late 2015," Kiplinger says. With a sense of job security and low interest rates, sellers can expect buyers will be pressing forward, creating a strong demand for new home listings.
Housings Supply & Demand Working In Seller's Favor - With the Twin Cities finishing 2013 with a 10 year low in inventory numbers, there are a higher percentage of home buyers competing for each listing. With a strong demand for real estate listings, sellers can expect a good response to their marketing efforts and higher number of requests for home showings. This puts you in front of more potential buyers with a greater chance of a successful home sale.
Housing Data Abounds Offering Awareness of Seller's Competition - The future competition for Twin Cities home sellers in any given price range will be a mix of those home sellers who have lowered their asking price as well as home sellers who have failed to sell their homes in 2013. Most sellers who fail to successfully their homes can later attribute it to a lack of proper preparation.
6 Advantages Twin Cities Home Buyers Can Expect to Have in 2014
Buying a home is almost universally a solid investment in the long run. Each year our Twin Cities housing market fluctuates due to a number of variables. Knowing Minneapolis real estate demographics and current market conditions will help your buy a home and make better informed decisions.
Buyers Gain Homeowner Tax Benefits - Tax benefits are not to be overlooked. Individuals who are renting a home, come tax time have a pile of 12 canceled rent checks versus the homeowner who has the equivalent of 12 canceled home mortgage checks that apply towards a tax deduction for most homeowners.
Higher Home Prices Mean Buyers Gain Equity - Indicators show home price gains will continue in 2014. Buying sooner rather than later means that the buyer will be the new homeowner who anticipate benefiting from the home equity that will build over time. Prices "won't be rising as much as they were rising last spring", predicts Jed Kolko, chief economist of San Francisco-based Trulia, operator of a leading online property listing service.
Affordable Interest Rates - Further positive news for homebuyers is that affordable interest rates are expected to remain, which translates to on-going opportunities for Twin Cities first-time homebuyers to gain the status of homeowners. Housing indicators show that mortgage fees and the costs of obtaining a home loan are going up in 2014. which might impact how much home you can afford. The good news: Rates are still at record lows, placing buyers in a great position to buy a home - if you have a steady income, if you have pre-qualified in preparation to buy, and stick to your budget.
More Real Estate Listings To Choose From - Low housing inventory levels are anticipated to increase as new construction ramps up and broadens the options available for homebuyers to choose from. While there may be fewer real estate listings to choose from as we Finnish the winter months, sellers who do list their homes for sale during the winter months are often more motivated to sell. Buyers may find that now if the prefect time to engage sellers who may be more inclined to negotiate. Read more about preparing your home purchase offer. For would-be Twin Cities homebuyers, more choice will offer a reprieve from the bidding wars of last year.
Lower Outside Investor Interest Will Improve Completive Atmosphere - Fewer investors are currently in the Minneapolis - St Paul housing market buying up inventory, which will brocaded the platform for traditional buyers. The fierce competition home sellers experienced in 2013 led to escalated bidding wars and put pressure on coming to the table with well-prepared financing and documents to prove it.
Buyers Waiting for Positive Home Equity Will See Gains - According to January's Market Pulse by CoreLogic, 9.6 percent of mortgages nationally were "underwater" in the Q3 of 2013, which is when the homeowner owes more on the mortgage than their property is worth. The remarkable factor is this represents a down-tick from 16.9 percent during the same period in 2012. Home sellers are turning into home buyers as the trend is expected to continue to improve in 2014; giving buyers the chance to move because they have the increased home equity to make it financially feasible.
Download the Minneapolis Weekly Housing Market Report for week ending January 11, 2014
Download Fannie Mae's December 2013 Housing Survey Results Show Expectations in Home Prices.
Download Fannie Mae's January 2014 Housing Survey Results Show Expectations in Home Prices.
Download the CoreLogic's recent Home Price Report.
Download the Twin Cities Skinny July 2013 on Minneapolis home price stability in spite of interest rate hikes.
A Homes Location Will Be An Even Stronger Factor in 2014
Local economics have played a higher role in housing trends since the market crashed. "Over the next 12 to 14 months, we will see continued regionalization in terms of housing trends and conditions. The national housing market does not march in lockstep anymore (whether it ever did is debatable). Ever since the real estate crash, we have seen a wider divergence in economic and market trends, from one region of the country to the next," according to the Home Buying Institute.
The being said: don't take any one single housing market prediction for 2014 or one source as your only indicators. With the fast pace of market fluctuation, micro-markets and regional housing variation make up a predominant difference. Housing experts at the University of St. Thomas Real Estate Matter to the Minneapolis Area Association of Realtors to CoreLogic's predictions for the Minneapolis sector, all predict the Twin Cities will have another strong year in 2014. Strong housing demand, job stability, steady home price growth are the key contributing factors. Location, location, location will matter all it ever has and perhaps to an even greater percentage
Home Destination, a Minneapolis residential Realtor helps Minneapolis home sellers list and market their home for sale. I am an experienced real estate agent in the Twin Cities housing market. With something as important as a home purchase getting skilled help in today’s world simply makes sense. Call 612-396-7832 for your own highly personalized guide to buy a new home.
"Buyers who’ve been waiting to buy might be more inclined to do so this year as the economy continues to improve and while they can take advantage of still-low mortgage rates." ~ RE/MAX Results
"More supply will not create its own demand. It will slow prices to a more sustainable rate of growth, but it won't make the market more affordable. Once prices reach their natural state, future price appreciation will depend on income increases." ~ Sam Khater, senior economist for CoreLogic
Download the MAAR Report on Twin Cities Housing Market Sheds Distressed Listings Giving Home Sellers Advantages
Download the January 28, 2014 press release by S&P Dow Jones Indices Winter Shows No Signs of Cooling in Twin Cities Home Prices
Jenna Thuening, a Minneapolis residential Realtor talks about the advantages home sellers and buyers have in 2014.
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