THE SPRING REAL ESTATE WEATHER REPORT FOR MINNEAPOLIS
January acted like March, February behaved like April (unseasonably warm, as in 30 degrees above normal), and March is bi polar. We have 60 degrees one day, and 6 above zero the next morning. The weather is still chilly, but the market is SIZZLING in Minneapolis!!!
Usually the spring market in Minnesota starts in March, but this year is started in January. No one told sellers. We’re in a drought of listings. The Mpls Association of Realtors shows that we are in a 25% decline in homes for sale year over year. And last year was a 30 year low. There is a blizzard of buyers, and barely a snowflake of sellers. We need to wake up some sellers and tell them that the sun is shining.
In February I showed an early 1900s home whose owners had done their homework to make it glisten. My buyer hesitated, the listing agent emailed “Thank you for your patience while we comb through 28 offers.” Last week we wrote on another 1900s home with a ‘partial basement’, meaning a tiny crawl space under the kitchen. This time it took 2 days for the sellers to scrutinize “25 awesome offers”. That listing agent asked, “Can your buyer go all cash?” No, if he had that much in cash he wouldn’t buy this house. The cloud of a short appraisal hangs over that roof.
This week showed some shifting winds. Monday night I wrote an offer for a client that wound up buried in a snow drift of 10 fabulous offers. We offered $10,000 over list price, with zero concessions, and we didn’t win. My buyers were feeling rained out. Today the listing agent called, “Umm, I hate to say it, but I think that the original best offer melted”. We bartered for a solid 30 seconds, and then everyone said, “YES!” The sun came out, and everyone won!
For the 2017 spring real estate market weather forecast: You might have to slosh through some puddles to reach the rainbow. Possible deluge of listings coming up late spring, storm clouds of appraisals approaching. A hail storm of multiple offers is predicted followed by a cold front of rising prices and interest rates. Trending towards unabated sunshine late spring, and a hot summer.