Experts say that 2015 was a good year for the Minneapolis real estate market. However, 2016 could even be better, an article from CBS Local reported.
A study conducted by the University of St. Thomas showed that the Twin Cities real estate market is headed to where it was before the crash seven years ago. The study also predicts that the sale prices of homes will increase 6 to 8 percent next year.
Realtor Clair Killen said, "The last four properties I put on the market, I sold three of them within six hours." Killen, who is the owner of Emerald Real Estate has no doubt that 2015 was a seller's market. She also mentioned that she gets multiple offers as soon as properties are posted in the market.
"Sellers need to be cautious of that, because they think they can put the price wherever they want and someone's going to buy it, but that's just not going to happen."
Killen also said that a competitively priced home which is in tip top condition will sell easily.
Director of real estate programs at the University of St. Thomas Herb Tousley, says that the real estate market is looking good compared to recent times.
"People always ask, 'Are we ever going to get back to the pre-crash levels?' We're starting to get pretty close," he said. Recent housing market studies also show promising trends, and that home sold in the Twin Cities in 2016 should increase by 4 to 6 percent. There are a lot more buyers than sellers at the moment and the number of available properties in the Twin Cities is way below average.
"Last time I looked it was 13,800 homes, which is really low, because it's normally over 20,000 to 25,000," Tousley mentioned.
Experts also said that interest rates should only increase slightly, from just below 4 percent to slightly over 4 percent, which is encouraging for buyers. Tousley also thinks there will be more inventory by spring time making this a really good time to buy.