Understanding the latest housing market trends in any city or state can help homeowners decide when is the best time to sell their property or buy a new house.
Analyzing the housing market forecasts for the 2022 year and beyond can help homeowners, and future home sellers understand the differences between mortgage rates, buying market, seller’s market, house savings, housing affordability, and realtor fees.
According to the latest housing trends in Minneapolis, studies and data have shown that the price of new homes will continue to fall during the 2022 season. Therefore, real estate agents, real estate firms, and real estate investors may need to use new selling methods to help get higher prices for their homes.
Minneapolis Real Estate Market in 2022
Knowing the basic Minneapolis real estate trends can help homeowners and sellers understand the market in all of the various metro areas. Minneapolis, St. Paul, and Bloomington — referred to as the Twin Cities — is the most populous and busiest metro area that requires homeowners to know the basic economy ratings, mortgage rates, and home selling prices.
Overall, there are a few key things to keep in mind when it comes to the real estate market in Minneapolis for 2022 and 2023:
- The price per square foot per property rose by almost 9% to $159 in 2021-2022
- The average asking price per home rose nearly 6% from 2021-2022 to almost $395K
- The median sale price per home increased almost 8% from 2021-2022 to over $340K
- The average number of days on the housing market in Minneapolis for a property dropped to just 27 days between 2021-2022
Furthermore, the median list price of houses in Minneapolis, Minnesota, came to nearly $300K, showing a decrease of over 3% over the year. The average sale price increased to over $307K, with the market being balanced more so than it has in previous years.
In addition, homeowners should understand the future of the housing market in 2022. The Minneapolis housing market continually changes over the years, and is expected to adapt in 2023. Therefore, homeowners need to know how the avg prices of homes, sales, and Minneapolis area realtors’ fees can change year-over-year.
House values rose nearly 14% within just 2022, showing how investors in real estate within Minneapolis should act quickly due to the lower affordability. Since homes are limited in the city, future home buyers should consider purchasing ahead of time to avoid any issues with spending more on the housing market and overpaying for a house.
In the Minneapolis metro area in 2022, real estate trends have shown the following:
- Zillow predicts the housing market to grow upward of 11.5% in 2022
- Minneapolis home values have increased by almost 7% in 2022 and will continue to rise in 2023
- Home values in St. Paul have increased by nearly 11% and will continue to rise in 2023
- The average home price has increased by nearly 14% since 2021 during the 2022 real estate year
However, before home buyers or home sellers figure out when is the best time to list their home on the real estate market, they should take the effects of the Covid-19 pandemic into account. For the Minnesota housing market trends in 2022, this entire region has to adapt to an imbalance between the houses on the market, buyer supply, and future buyer demand.
As a result of this imbalance in the housing market, the price of homes will increase.
The impact of Covid-19 was felt throughout the entire housing market in Minneapolis from 2020, still affecting the real estate trends and market in 2022 and beyond.
Minnesota is slowly starting to bounce back from a slow time of growth, with mortgage rates hitting the lowest points possible in the last few years and experiencing high levels of growth during the most popular home-buying seasons.
Forecasted Inflation of Real Estate in 2022
Home buyers and home sellers should understand the changes in the real estate trends and rates for 2022 before deciding what to do with their property. The Minneapolis housing trends can change over 2022 and 2023 due to inflation and price changes.
The median list price of houses in Minneapolis comes to just over $335K in 2022, which is up by nearly 5% since the previous year. The median list price per square foot for a property in Minneapolis comes to over $230, with the median sale price reaching almost $336K.
Homeowners and home sellers need to consider the ever-changing Twin Cities real estate market, Covid-19, and inflation rates when it comes to the unstable Twin Cities housing market for 2022 and 2023. The key to deciding when to sell or buy a property depends on inflation and Twin Cities housing market interest rates.
For example, some macroeconomic trends show that properties are still at a low rate compared to other cities and metro areas in the country. However, homeowners and property owners need to understand the other way that inflation can affect the real estate market in Minneapolis.
The other side of the coin when it comes to inflation is that down payment can decrease over time, in addition to the buying power.
Some other interesting real estate trends to take into account include the price of building homes, labor prices, availability of land, land regulations, permit fees, and inflation fees.
Minneapolis Real Estate Price Forecast in 2022
Homeowners and home sellers need to take into account the real estate price forecast before buying or selling properties in the upcoming year. There are some values and trends to consider in 2022-2023:
- Minneapolis home values have increased by over 6.5% during 2022
- Saint Paul home values have gone up nearly 10% since May of 2022
- The Minneapolis housing market is positive for home buyers and home sellers in May of 2023
- The average home value within the Minneapolis, St. Paul, and Bloomington Metro area increased by over 12% during 2022-2023
- Minneapolis housing prices are expected to continue to rise during the 3rd quarter of 2023 compared to the 3rd quarter of 2022
Therefore, homeowners can expect the real estate activity to continue to grow over the years, albeit slowing down during the most common home-buying season. Since there is limited housing available, limited properties, and fewer inventory in Minneapolis compared to other cities, buyers may have to pay higher prices, and sellers may have the upper hand.
Limited choices of houses on the housing market alter the median home price to $375K, with the supply continually decreasing over 2022 and 2023.
Trends in House Selling by 2022 in Minneapolis
Are you looking to sell a house fast in Minnesota? Before you can do so, homeowners need to look at the basic trends for house selling in 2022 within the Twin Cities region.
There are some trends and forecast facts to keep in mind when selling a house in Minneapolis:
- Minneapolis home values will continue to increase by the end of 2022, increasing by 12.9%
- Interest rates of houses will rise in the next few years (2022-2023)
- The rental rates for rental property will increase per year in Minneapolis, increasing to 5.4%
- Buyers will have to move farther away from the center of Minneapolis to afford the housing market
Curious as to the upper echelon of the housing market in the state? Check out the most expensive home sales in Minneapolis to avoid paying this much money!
Average House Price Trend by 2022 in Minneapolis
Homeowners and home buyers should understand the average housing price trend during the current year in Minneapolis. By understanding the MN Housing market trends, buyers and sellers can get a better idea of the average and what they should be spending.
There are certain trends and facts that homeowners should keep in mind when evaluating the real estate market in 2022:
- There are 605 new listings per year, decreasing by a whopping 19% since 2021
- 811 homes were sold in 2022, decreasing by over 7% since the last year
- The median days on the market in Minneapolis come to just over 25.5
- The median rent of a home in the Twin Cities metro area is $1,595
- The price-to-rent ratio is 16.82
- The unemployment rate is 3% in Minneapolis (lower than the national average)
- The median list price decreased by 0.4% in the last year
- The 1-year appreciation rate for a house in Minneapolis increased by 5.4%
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For those who want to list their homes for sale, it is helpful to know more information about real estate investing, the real estate market, foreclosures prices, condos prices, and single-family home prices.
Home buyers and home sellers should analyze the metrics of home prices, real estate fees, and average home sale prices to see how they change over time in the Twin Cities region.