Twin Cities YOY Home Appreciaton Rates Return to Norms: Twin Cities YOY Home Appreciation Rates Return to Norms Home buyers in the Twin Cities seem largely undaunted by higher home prices, as the pace of year-over-year home appreciation rates returns closer to norms and remain progressive. Home appreciation is still climbing; its more moderate pace is a reflection of a balancing housing market. This is regarded by housing experts as a healthy adjustment. “Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent,” said Mark Fleming, chief economist at CoreLogic. “Continued moderation of home price appreciation is a welcome sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future.” Home Price Appreciation Rate in the Twin Cities Up .9 Percent in August House prices across the Twin Cites including suburb regions increased at a slower pace and behind the national average for the month of August. CoreLogics Home Price Index reveals comparisons between August 2013 and August 2014 home price improvements in the U.S. were 6.4 percent; in the Twin Cities they increase was increased lower at 5.1 percent. At the same time, the home price appreciation rate in the Twin Cities was 0.9 percent from the previous month. Some of the best news specific to the Twin Cities MN housing market is that distressed home sales are now below housing crash levels, according to the University of St. Thomas posting. With fewer numbers of deeply-discounted Twin Cities bargain homes available to purchase, house prices in the metro continue to record monthly gains regardless of the decline in the number of sold homes. Home Price Appreciation Rate in the Twin Cities Up .9 Percent in August Fewer Twin Cities investors are in the market for residential single-family homes at the moment, which is benefiting the supply of real estate inventory. Traditional home are welcoming the relief from former high volumes of all-cash investment buyer. As YOY home appreciation rates return to norm, profitability margins that property investors rely on are slimmer; activity and interest still remain high. There is still many who prefer moving stock market investment funds into real estate holdings. Former Twin Cities homeowners who saw had to hand the keys to their home to someone else due to foreclosure or short sale can return to eligibility status to buy another home in the future. Hopes are that many of these “boomerang buyers” will gain the financing needed to jump back into the market this year. The Twin Cities has an above average job market with a fair combination of business in the metro. As local businesses increase their levels of hiring, many are eager to move from the rising costs of rent and back into homeownership. Impact of Both Buyers of Twin Cities Owner-Occupied Homes and Investors The increase of institutional investors buying residential homes in the Twin Cities during recent years has drained the staggering load of foreclosure inventory. The residual effect from the housing crisis has shifted many former homeowners into rental properties. The combination of investors buying homes for rental properties and home buyers looking for the home they will occupy, the Minneapolis market tipped into an unbalance of more buyers than sellers. Homeowners who find they have new home appreciation can leverage equity in their existing home to buy another house. All available Twin Cities housing market insights help if you’re considering when is the best time to sell your home. Home Destination can provide a comprehensive comparable home pricing report specific to your location. Otherwise known as comps, information gathered in the report benefits you by offering leads to pre-sale and home staging activities that should top your list of things to do before listing your Minneapolis home for sale. If you’re a potential buyer, timing is still very good with interest rates remaining at historical lows. For more forecasting information on Twin Cities MN Housing market home price appreciation, read our former article titled When Minnesota Will Reach Pre-Recession Home Prices. Home values are constantly moving up and down. Home values appreciate in the long term almost always. But, of course, there is always a certain amount of risk in real estate. When your house appreciates you have more resources to borrow against, and youll make a greater profit when you sell. There are many different reasons why property values in rise and fall. ~ RE/MAX Results Agent Frank Schuster of Edmond For more information, read our article titled Twin Cities MN Housing Market Home Appreciation Improvements. If you have felt like your amount of home equity was too thin to permit you to sell one home and buy another one, permit me to review your situation and see what your best options are. Call 612-396-7832 and me for your free Twin Cities home value assessment.
Posted on: Fri, 10 Oct 2014 21:42:05 +0000
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