April 18, 2020
Strong March Housing Market Report Despite Pandemic
The Twin Cities housing market saw a strong March amid the COVID-19 pandemic.
This coronavirus pandemic has not done anyone any favors this month, businesses included. However, there is one industry that is top: residential real estate.
At the moment, there are still a large number of people scavenging to buy and sell their homes. This creates a great environment for buyers and sellers. These conditions benefit buyers due to the fact that there are less offers going into each listing, which decreases the chance of overpaying for a home. On the opposite side, the ingenuity of Zoom Meetings and other online video streaming platforms have revolutionized the process of showing homes, which helps sellers as well. When buyers rely on virtual tours, they are able to narrow down their options much quicker and are able to make a more logical decision without leaving the comfort of their own home.
In the month of March, Minnesota home sales were up by 10% from previous sales in 2019. Sellers were also receiving on average about 98% of their asking price. This may be due to a lower inventory and a higher demand for homes.
A spokesperson from Minnesota realtors reported, “Interest rates were like a roller coaster for about two weeks as people tried to figure out what was going on with the economy. They stabilized [and] now they’re very solid at about 3.25% – that’s a very good interest rate.”
In addition to the amazing conditions for sellers, there was a 13.6% increase in new listings in March and pending sales grew 11.5% month over month. Minnesota Realtors reports that while there may be a slight dip, overall, the market should continue to do pretty well.