Real Estate News – June 2022

June 18th, 2022
Brought to you by Sarah Marrinan
It is Back to the Fifties Weekend at the MN State Fairgrounds! Come visit! Details:

As part of my desire to always keep up with the real estate market, consumer trends and more, this newsletter is a constant work in progress. I feel strongly that I am an Advisor and that means my newsletter should always have some of the latest news in real estate. Also, I know people aren’t thinking about moving every and so I need to include other useful homeowner information. I hope this newsletter always provides value on some level. I would love to hear your suggestions for future editions. 

(See the newsletter from last month – May 2022 on my blog.)

A message from the President of the MN Residential Real Estate Council: 

News headlines don’t tell the whole story…or your local story. If you are considering a move, it should be about your life and your specific situation, not the headlines. While nobody has a crystal ball, trusted professionals can help you make the best possible decisions. 
Rapidly changing real estate markets* require skills in many areas; local market data interpretation, negotiations, marketing and pricing. Experience, education and reputation can play a large role in competency in these skill areas. While many of the best agents have the Certified Residential Specialist (CRS) designation, there are some great agents that don’t (but should). REALTORS holding the CRS designation are in the top 3% of agents! Read more about the local Minnesota RRC and REALTORS that have taken the steps to earn designations and certifications through the council.

*YES, THE REAL ESTATE MARKET IS RAPIDLY CHANGING IN THE TWIN CITIES. Market stats are the PAST and while you can use them to analyze market trends, they DO NOT tell you what is happening at this minute in time. That takes a “boots on the ground” professional to talk about what has been happening to them and their peers that week – even that day – in the market.  


Twin Cities Homes Sales  
With low but slowly rising inventory, the Twin Cities is still in a seller’s market. We do have seasonal market changes in Minnesota so a slight summer slow-down shouldn’t induce panic. Interested in what your market segment is doing? REPLY TO THIS EMAIL for a 10 minute zoom call that will drill deep into stats that matter specifically to you. (Market stats below.)

Minneapolis’ Strong Job Market 
The Twin Cities job market has been revived by a wave of jobs in the life sciences, biotechnology, and medicine. This has helped to give workers in Minneapolis an average annual salary of six thousand dollars higher than the national average. The city even made a “The Ladders” list for cities with the most $100,000 plus jobs. That fuels the demand for the Minneapolis rental properties at the more expensive end of the market. Yet their location on the Mississippi River and other transit routes contribute to a diverse job ecosystem, where employers like 3M and General Mills maintain manufacturing and food processing hubs. People move here from across Minnesota in search of work, since their unemployment rate is consistently one full percentage point lower than the national average.

Metro Area Market 
According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the Twin Cities metro area ended the month of May with 6,797 homes, 5.3 percent more homes than last May. This is the first year-over-year inventory increase since March of 2020. The metro sits at 1.3 month’s supply of inventory, 18.2 percent more than the year prior. A balanced market has four to six months’ supply. “There’s a sense out there that things are rebalancing somewhat,” said Denise Mazone, President of Minneapolis Area REALTORS®. “But it’s important to remember that we have a long way to go before we’re in oversupply territory so prices should remain firm for now.”

Inventory growth in the Twin Cities real estate market has been rare over the last 13 years. Since the Great Recession, there have only been three periods with multiple consecutive months of year-over-year supply growth. If continued, the 5.3 percent inventory growth in May could hint at a new trend. Meanwhile the median home price rose 9.0 percent to $375,000. While this does amount to a record high, it’s likely June and July will exceed that level. The housing affordability index reacted to higher prices and rates with a reading of 94, meaning the median income was 94.0 percent of the necessary income needed to qualify for the median priced home under current interest rates. Given more listings and fewer sales, a loosening in inventory could cap price gains, but that takes time to play out and prices are unlikely to soften in the short term.

Market activity varies by area, price point and property type. New home sales rose 6.7 percent while existing home sales were down 3.2 percent. Single family sales fell 4.1 percent, condo sales declined 3.8 percent and townhome sales were up 4.0 percent. Sales in Minneapolis decreased 7.0 percent while Saint Paul sales fell 3.5 percent. Cities like Vadnais Heights, Buffalo, and Champlin saw the largest sales gains while Ramsey, St. Michael, and Andover had lower demand than last year.


How to Avoid Rising Rates While Home Shopping
Rising rates affect your purchase power (how much house you can afford) so it’s important to get the lowest possible rate. How can you show with confidence? 
Use a mortgage program like Lock ‘n’ Roll Program:
-Lock in your rate while shopping for a home.
-Lock in your rate for up to 90 days initially.
-All property types are available.
-Rate Renegotiations or Extensions are available when you have an accepted offer.
-A variety of fixed rate loan terms are available.
-Ability to take advantage if rates drop after locking to relock at a lower rate.

Is it the right time for you to sell your home?  
Determining the best time to sell likely requires you to reflect on your home and lifestyle. Certain months may have stronger market activity, but what really signifies if you’re ready to sell are the following personal indicators:  Read More  

What Can You Do With Your Home Equity?
The equity you have in your home is the difference between the value of your home and the debt you owe on the home. Email your address to me so that I can help you evaluate your home equity.


Which Herbs to Consider?

Which Herbs to Consider?

Thinking about adding herbs to your diet for health reasons? Try these:

ECHINACEA: Use pure Echinacea extract to fight off colds, flu and urinary tract infections.

GARLIC: Research indicates that 900 mg of Kwai dried garlic pills or one raw clove of garlic daily lowers total cholesterol more than 11 percent and LDL more than 14 percent among people with levels over 200.

GINKGO: Studies that show ginkgo improves blood flow to the brain and extremities and can alleviate vertigo and tinnitus (ringing in the ears).

KAVA: Touted as a natural tranquilizer, the evidence for effectiveness is strongest for mild anxiety disorders that interfere with social interaction and sleep, but it can be habit-forming.

SAW PALMETTO BERRY: Saw Palmetto berry is effective in treating benign prostatic hypertrophy (enlarged prostate). While it doesn’t actually shrink the prostate, it does relieve the symptoms of enlargement, such as frequent urination.

ST. JOHN’S WORT: The herb is an option for low-level depression, but people with more severe depression should consult their doctor. St. John’s wort can increase susceptibility to sunburn and cataracts.

VALERIAN: Several studies suggest that valerian may reduce the time it takes to fall asleep, especially insomniacs and people with sleep difficulties.

Whether you’re ready to sell this summer or a year from now, I can help you decide which improvements make the most sense for your property – call me anytime!

design element

Sarah Marrinan GRI, CRS, ePRO, SRS, RENE, PSA
MN President, Residential Real Estate Council (RRC)

651-964-0289 |  651-401-8188

Engel & Völkers Minneapolis
Trusted Advisors. Real data. Real insights.
Finest Real Estate. Local Expertise. Global Reach.

Thinking about buying or selling? 651-964-0289
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Sarah Marrinan is associated with Engel & Völkers. If you have brokerage representation with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed. Equal Opportunity Housing Provider. 

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