MINNEAPOLIS (WCCO) — The season isn’t the only thing changing in the Twin Cities metro. New numbers suggest the housing market is transitioning, too.
Over the summer, homes in the metro were selling before they were even officially listed often at full price or above.
New numbers suggest that trend is leveling off.
Noelle Nielsen is with RE/MAX Advantage Plus Bright Birch Group. She spent Sunday at an open house in Burnsville. Renovation-ready, it’s listed at $485,000, a reduced price.
“We have seen a drop in buyers coming out in September. So since then, we have had to do a price drop in this particular house,” Nielsen said.
And Nielsen is far from alone. Data from Zillow from late August shows nearly 20 percent of metro listings were slashed in price.
Nielson says, “I think buyers are getting what I call buyer’s fatigue. So not as many buyers are coming out and writing offers because they got tired of doing that all summer-long, fighting with people to the multiple offer scenario.”
In August, closed home sales in the Minneapolis area were down 1.4 percent, according to the Minneapolis Area Association of Realtors.
Nielsen says, “It’s still a hot market for sellers in hot pockets of the city, however now we are seeing that kind of level off, so there aren’t maybe as many multiple offers as there were back in July or June.”
Although Nielsen did get some traction during her Sunday open house, it was mostly neighbors passing through. So she says it’s likely they’ll have to slash the price of this renovation-ready home once again.
“I would say that the buyer has the advantage this month. Even though we still have very low inventory, we are seeing less buyers coming, out so it’s the time for them to take advantage,” Nielsen said.
Noelle says some of the slowdown is seasonal and it’s all relative.
“It still really is a good market, it’s just not as hot as it was two months ago,” she said.
Numbers show the housing market is still hottest in downtown Minneapolis and St. Paul, while things are cooling down in the suburbs.
But the good news here is if you are buying, now may be the time to make a deal.