Market update: 12/15/2022
The Minnesota real estate market is feeling its seasonality this month with less home inventory and fewer buyers willing to make the jump during the holidays.
Inflation numbers (CPI) came out better than expected at 7.1 vs the 7.7 we saw in October. The fed met this week too, and raised rates one-half a percent vs the previous three-quarters we had seen previously. These 50 basis points were anticipated by the market and have already been priced in. This is good news for those hoping to see a decrease in mortgage rates.
Today the average consumer is locking in at around 5.99 percent with a 1% origination fee – a big improvement from the recent seven percent numbers. Home inventory is still flat and builders have pulled back too, causing a future inventory shortage of new construction homes.
The next month or two will be very telling as to what we will see this Spring. Multiple offers and competition amongst buyers could easily still be very prevalent for the “good inventory”. Currently, buyers have time to be picky and patient, but will that continue long-term? My hunch is no.
The advice I have given for the last 12+ years stays the same: Move whenever YOU are ready, but if you have the flexibility, buy in the Winter and sell in the Spring.
If you would like to know more or are looking for specific advice based on you’re situation, let me know.
