Minnesota 2022 Real Estate Market

What’s going to happen in Minnesota real estate in 2022…Doesn’t everyone want to know?! Here are 3 of the big things that experts are predicting.

1.     Prices of Homes will continue to be elevated...  Yes, we know this is unfortunate for the buyers out there and fantastic news if you're still thinking of selling. Even before the pandemic, there was low housing stock in the US. Covid-19 supply chain troubles and a labor shortage have only made things worse. Though builders are trying to ramp up production, inventory will remain low.

2.     This will still be a sellers’ market and listings will be a quick turnaround. Potential buyers can expect bidding wars on many homes, particularly in the spring and summer – be prepared for the need to adjust standard terms and conditions to win these wars! While no one can predict exactly what it will be but expect to see prices continue to climb.

3.     Interest rates will be rising. The Federal Reserve is expected to raise interest rates a few times in 2022, which means mortgage rates will likely follow suit. In speaking to our Mortgage lenders and colleagues they predict a 30-year-fixed mortgage rate will reach 3.60% by the end of 2022, compared to an average of 3.30% today.

Let us know if you have any further questions or want to talk more. Check out our new website at avenuerealtymn.com.