What are the Signs the Minnesota Housing Market is Healthy?
The Minnesota housing market is moving up and getting healthier. While it’s taken a while to reach this point, the time has arrived where the market is stabilizing in Minnesota. There are a few signs that are pointing to this theory that the market is getting healthier.
Mortgage Rates are Low
Buyers can take advantage of a good deal right now. Most people thought they missed their chance to score a great deal on mortgage rates, but they haven’t. As of August of this year, mortgage loan rates were at their lowest in 14 years. This goes against what was predicted which was that rates would start to rise.
Millennial Generation Wants to Buy
Millennials are the age group between 18 and 33 who were born between 1981 and 1996. This generation is finally starting to become interesting in buying after being known was “Generation Rent.” Rental prices are increasing and this group is ready to buy a home.
Homeowners are Returning from Negative Equity
Only around 10% of homeowners are still underwater on their home in the area. The increase in prices the last couple of years helped owners rise from negative equity.
Foreclosures are less frequent
Now that people aren’t dealing with a negative equity, they can sell their homes regularly instead of being foreclosed. The city has seen a decline in foreclosures and short sales this year compared to last year.
Luxury Homes are Selling
Another sign of a healthier housing market in the area is that people are starting to buy luxury homes again. When times were hard with the national economy, luxury homes weren’t selling and people were watching discretionary spending habits. The lakeshore home sales have increased in the area.
Minnesota’s housing market is increasing and people are buying homes again.
