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Sunday, September 28, 2014
Twin Cities Real Estate Market Forecast - Fall 2014
September historically starts the fall season with good sales and activity. We think it should be so again this year. The Parade of Homes has had good traffic indicating there are still plenty of people thinking of moving. Political and world affairs may give pause for some, but a very attractive local economic picture should give comfort to homeowners and buyers alike. Interest rates will remain fairly stable.
For some reason, more people like to move in fair weather than cold weather. If you are one, we think you should be in full selling or buying mode. The process takes about two to four months from start to finish to complete itself. The real estate market this year, and going forward as far as we can see, is solid.
Low interest rates increase buying power. Interest rates are holding steady at 4 percent for a 30-year loan and close to 3 percent for a 15-year mortgage. How long can rates stay this low?
Home values this year have bounced around a little, with fairly strong increases in new construction leading the way. Existing home values for the most part are flat for the year; some are slightly higher in the lower brackets, and some are are actually lower in the mid-upper brackets.
We think this is as good an opportunity for buyers as we have seen during any other time in the past 50 years. A combination of low mortgage rates and lower prices is a winning ticket for most.
We also believe opportunities like this won’t last forever. If you are thinking about a new home, this is a great opportunity and I invite you to call me for a visit.