Twin Cities housing market cooling off after several busy years
MINNEAPOLIS -- The Twin Cities housing market has officially cooled off after several busy years.
The Federal Reserve stabilized interest rates Wednesday, which could bring in more buyers, but that doesn't mean the process will be easier or cheaper any time soon.
Shannon Law says she's been looking for a house for years but so far has been outbid on the houses she can find.
"Some houses have a lot of character and then you go into the bathrooms and you're wondering, you know, if there's a disco in there," Law said.
According to Minneapolis Area Realtors, new home sales were up 34.6%t last month while existing home sales were down 23%.
Home sales were also down in Minneapolis 13% and in St. Paul by nearly 30%.
"We still have a shortage of homes. We still have way less homes on the market than what we consider a balanced housing market," said Jerry Moscowitz, President of Minneapolis Area Realtors.
Which is why you shouldn't expect prices to go down anytime soon.
"It's tough to have much of a drop in price if supply is tight. The old supply and demand just really applies here," Moscowitz said.
Despite that, the market is seeing signs of heating up as interest rate hikes have cooled.
Experts say you shouldn't wait for a potentially better rate.
"You marry the house, you date the rate. You don't necessarily stay in that same mortgage for 30 years, which a lot of people think. The national average for staying in the same mortgage loan is right around 7 years," said Sam Scholler with Voyager Financial.
Minneapolis Area Realtors says the market still favors sellers right now with the low supply.
On average, sellers are accepting offers at 101% of the asking price. Last May that average was 104%.
