What is happening in that crazy real estate market of ours?

I have recently had several people ask me about this crazy real estate market we are experiencing. Is it a good time to buy? Is it a good time to sell? What is happening out there?

Unfortunately the answer is not a simple one but hopefully with help from the Minneapolis Area Association of Realtors (MAAR), I can give it a little more clarity. I have attached a link to September's "The Skinny" brought to you by MAAR. Take a few minutes to watch this video clip as I think it provides a lot of clarity to what we are facing.

In short, inventory is decreasing (good for sellers), buyer demand is increasing (also good for sellers), however prices seem to still be decreasing slightly (good for buyers). Talk about something hard to get a handle on!

The biggest factor in all of this appears to be lender mediated properties (foreclosures and short sales) which I can explain a little more in depth in a different posting. Even though demand is up and inventory is slowly decreasing, lender mediated properties are causing prices across the market to decline slightly. You will see in the video that median sale prices of lender mediated properties went down in August by 9.6% while owner occupied home prices only declined by about 4.3%.

So what is the answer? It is a good time to buy or sell? Buyers still have a fantastic inventory to choose from, interest rates have recently declined to under 6%, and as long as homes are priced well and properly staged, homes are selling allowing sellers to move on to make a great buy of their own!

Take a minute to watch "The Skinny". I would love to have your feedback and questions. Call or email me anytime!