Minnesota Buyers Agents

Buying a home in Minnesota—what to know.

• Affordable cost of living: Minnesota’s housing market is attractive for both homebuyers and renters. In Minneapolis, a major city in the state, the median sale price is $338,300, below the national median, making it an affordable living option. St. Paul, its neighboring twin city, offers a cost of living approximately 5% lower than the national average, further enhancing its appeal.
• Beautiful natural landscapes: Minnesota’s wealth of lakes, including the majestic Lake Superior, is iconic. Up north, Voyageurs National Park offers a breathtaking wilderness with interconnected lakes, forests, and rugged terrain. The Superior Hiking Trail along the North Shore is perfect for hikers exploring rolling hills and lush forests. Additionally, the Boundary Waters Canoe Area Wilderness showcases pristine lakes, dense woodlands, and the opportunity to paddle through untouched nature.
• Four distinct seasons: Living in Minnesota brings the undeniable advantage of experiencing four distinct and equally charming seasons, each offering diverse opportunities for both outdoor and indoor activities. Moderate year-round temperatures range from mid-80s°F in the south to upper 70s°F in the north. 
• Remarkable food scene: Minnesota’s diverse culinary scene blends regional classics like Tater Tot Hotdish and Scandinavian dishes with international cuisines from Mexican to Mediterranean. Urban centers like Minneapolis and St. Paul boast vibrant restaurant cultures, while farmers’ markets highlight fresh, seasonal ingredients. Hidden culinary gems await discovery in small towns like Mantorville, where historic buildings serve excellent burgers.

Minnesota buyers agents provide Key Tips for Homebuyers in Minnesota in 2024:

• Prioritize Early Saving: Calculate both one-time and recurring costs like down payment, closing costs, move-in expenses, and property taxes and start saving to buy a house.
• Maintain a Healthy Credit Score: Your credit score affects your eligibility for home loans and the interest rates offered. Pay bills on time, keep credit cards open, and monitor your payments regularly to repair your credit score.
• Organize Loan Paperwork: Lenders require financial reports to verify your income, assets, and debts. Keep all necessary documents, including tax returns, W-2s and 1099s, and bank statements in one place.
• Find a great real estate agent in Minnesota: Your real estate agent will be your main ally during the home buying process. Besides finding and showing you properties, your agent will help you make offers, negotiate contracts, and navigate the closing process. Plus, they can recommend other service providers like title companies and inspectors to help you buy your home in Minnesota. Don’t rush into choosing an agent. Instead, take the time to research and interview multiple real estate agents who have experience in the neighborhoods you’re interested in. You should pay attention to a realtor’s:
• Opt for First-Time Homebuyer Programs: Explore first-time homebuyer programs offered by states and cities, such as low-interest rate loans, down payment, closing cost assistance, and more.

In conclusion, with declining home prices and stabilizing mortgage rates, now is the opportune time to buy a house in Minnesota. To make the most of this favorable market, plan your down payment and closing costs in advance. Additionally, prioritize making timely payments to maintain a high credit score. For personalized advice tailored to your homebuying journey, consider reaching out to experienced Minnesota Buyers Agents.

Is Now a Good Time to Buy a House in Minnesota?

Absolutely! Presently, there is a limited number of buyers in the Minnesota market compared to the available homes. Soaring interest rates have deterred buyers, reducing the likelihood of bidding wars. With mortgage rates expected to stabilize in 2024, more buyers will likely return. Therefore, we recommend considering purchasing a house now. If mortgage payments strain your budget, you can always explore the option of refinancing.

Implications and Trends

The latest Local Market Update for December 2023 by the Minnesota REALTORS® provides a detailed snapshot of the state’s housing market performance. Examining key metrics, we gain insights into the current dynamics shaping the real estate landscape.

In Minnesota, year-to-date figures for December 2023 reflect noteworthy changes compared to the previous year. New listings have surged by 12.0%, signaling a robust influx of properties into the market. On the flip side, pending sales have grown by 8.7%, highlighting active buyer interest. For expert guidance in navigating this dynamic market, consider reaching out to experienced Minnesota Buyers Agents.

However, the overall trend in closed sales presents a different picture, with a 4.0% decrease. This decline suggests that despite increased listings and buyer interest, the actual transactions have not kept pace, leading to a dip in closed sales.

Minnesota Housing Market Predictions 2024 

Return of Home Sellers: Sellers who stayed on the sidelines in 2023 are expected to re-enter the market, particularly those compelled by new job opportunities or a desire to relocate to more affordable areas. 

Stabilization of Mortgage Interest Rates: After hitting a peak of 7.79% in October 2023, mortgage rates declined to 7.35% in November amid a softening labor market and economic slowdown. Forecasts indicate that rates, although remaining above 6%, will stabilize in the second half of 2024.

Rise in the Number of Home Buyers: Historically high interest rates deterred buyers in 2023. But an increase in mortgage demand followed the rate drop to 7.35% in November. The easing inflation and stabilizing rates are expected to attract more house hunters.

Continued Increase in Home Prices: Home prices steadily rose in top metros across Minnesota year-over-year, reaching $338K in September 2023. Experts predict that home prices will continue to rise until the low supply and high demand dynamic changes. For personalized insights and expert guidance, consider consulting experienced Minnesota Buyers Agents.

Growth in New Home Construction Sales: In September, 12.3% of homes purchased were new constructions, the highest since 2022. Home builders, offering $30,000 worth of concessions in 2023, are expected to compete for buyers in 2024.