If you follow the news, you’ve probably heard mixed expectations for the 2019 real estate market.  At Jane Schmidt Homes, we prefer to base our real estate guidance on historical data and statistically-based predictions for your specific market. Lacking the cliche “crystal ball” to help us guide you toward the best real estate decision, we refer regularly to the data provided to us by the Minneapolis Area Association of Realtors. Decades of data gathered through the MLS show us historical trends and insight on what may be to come given the variables of economics, politics, and other factors.

So what does this mean for you as a buyer, seller, investor, or any combination of those? Let’s look at few things:

  • Inventory: The first half of 2018 saw historically low levels of listing inventory. We saw this pick up in the second half of the year, even through the typically slower months of November and December. As we move into the spring market, we’re still seeing that low inventory of homes for sale.
    For buyers, this means more competition and less selection. Bring your A game when you start house-hunting which means being pre-qualified with a reputable lender, know what you’re looking for in a home, and be ready to make a strong and clean offer when you find the right one!
    For sellers, you have less competition! This doesn’t mean you can cut corners with the presentation of your house. Buyers and their agents know that they’re paying a premium for houses and expect the condition to reflect that.
  • Home Values: Sale prices continued to rise throughout 2018 and we saw that slow down in the second half of the year. Are home prices going down? No. They’re still going up, just not as quickly and as high as we’ve been seeing. For the past few years, home prices have risen about 5% year over year. We’re expecting that to look more like 2-3% in 2019.
    For buyers, this means the affordability gap may be closing (or at least narrowing). The home you’re looking for may be at more comfortable price point for you this year.
    For sellers, you’ll still see that year-over-year equity growth in your home, but at a lower rate. It’s still a great time to sell and maximize your proceeds!
  • Interest rates: The government did not raise interest rates in the latest round. This is great news for buyers struggling to find housing affordability with home values increase faster than inflation rates. An increase in interest rates would impact that affordability even more. 

So you’re thinking about making move and want to know what how this translates to your situation? That’s where you give us a call and we look at how the market looks for you. We’ll pull the numbers and analyze details down to the city, the school district, or even the lake!

Contact us to talk about your market!

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