NW Metro Real Estate Market Update January 2024

I wanted to check in because I’ve had a lot of people ask me about what to expect in the Real Estate market this year – there are a lot of moving parts that I would love to update you on. 

As you no doubt already know, interest rates are much higher now than we have seen in the past several years. The increase of rates along with the continued low inventory, made it a tough market in 2023, especially the first time homebuyer market.  Rates have been slightly decreasing in 2024 and there is talk of the Fed continuing to lower rates if inflation is kept in check, however we do not expect to see the low 3-4% rates of the past few years any time soon. 

At BRIX Real Estate, we monitor the market conditions very closely. BRIX produces a weekly Market Meter that indicates if it is a buyer, seller or balanced market based on inventory, closings, number of showings and foreclosures.  Follow my Facebook Page for weekly updates.

As you can see right now we are seeing a pretty evenly balanced market between buyers and sellers.  We are still (STILL!) experiencing low inventory in the Twin Cities, many of the potential sellers are holding on to their low interest rate mortgage and postponing their moves.  Despite this, we are expecting a fairly busy spring market due to the lower rates, with a bit of a slow down over summer and fall leading up to the election. 

One market that is pretty hot right now is New Construction. Many builders are offering incentives, especially on homes that are completed or near completion and are offering below market interest rates and other financial incentives such as funds toward your closing costs if you use their lender and title company.  

For potential sellers – a balanced market means that you may not get 10 offers on your home, however a home that is staged, marketed and priced correctly can still sell quickly – keeping you in the drivers seat during the sale.  If you are interested to know how much your home is worth right now, email me and I can run a market analysis. 

For potential buyers – I have heard several other agents say – “Buy now because when rates go down, prices will go up! (You can always refinance later)”.  This may be true, but I counsel my buyers that it is more important now than ever to sit down with a good lender and find out how much home you can afford with a payment that you are comfortable with. This is not the time to get in over your head. I can start sending you listings anytime so you can understand what you can buy in your price range.  If you are looking for a great lender to speak with or would like listings sent to you let me know.

As always I am here as a resource to answer your real estate questions and concerns. Feel free to reach out anytime, and let your family and friends know I am here for them too! 

Myra