New numbers from the Minneapolis Area Realtors show September home sales were actually down compared to September of last year.
However, with the COVID-induced buying frenzy of 2020, analysts say 2019's numbers are a better comparison. In that case, sales were up a whopping 16%
It's still a seller's market, with more buyers interested in a home than there are homes available.
Minneapolis Area Realtors President Todd Walker says he's beginning to see signs of a more balanced market.
“We're seeing more listings that are taking price corrections because I think people have been emboldened by the market, and the press and everything else and have been pricing a little bit too high and then they adjust and then they get their properties sold,” Walker told WCCO’s Laura Oakes. “I think economic factors will help us get towards a ‘normal’ market. “Interest rates have really driven a lot of buyer activity.”
If you compare 2019 to 2021, there were small but consistent gains in new listings, pending sales and close sales. If you compare this year to 2020, because of the spike in activity during COVID, this year isn't equaling last year.
Walker says the seller’s market is great if you’re selling, but expects interest rates to go up to balance the playing field some.
“I think what will happen is when we see interest rates start to rise it's going to affect the affordability of homes,” Walker told WCCO. “I think we've already seen, I use the word softening of the market. Maybe the start of a return to a normal or a balanced market, over the past few months.”
Walker also says that high rent has also pushed many people into the market for buying homes. He is expecting mild rate increases throughout next year however Walker warns that there is no “crystal ball for these situations”, so we’ll have to wait and see.
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