MINNEAPOLIS (WCCO) — Maybe you’ve heard this story on your block.
Your neighbor puts their home up for sale and it’s sold — in two hours.READ MORE: As School Year Approaches, COVID Developments Cause Concern For Parents
According to a Twin Cities real estate research firm, this is happening all along the metro.
Experts said it’s because homes for sale are in short supply, and demand is rising.
In southwest Minneapolis three homes — a stone’s throw from one another — are for sale.
Maxfield Research Inc. is a real estate consulting development firm and Max Mullins said the most competitive market right now is single family homes in the $150,000 to $300,000 range.
Mullins said it’s because of increasing demand, and a short supply of homes for sale.
“Right now we’re seeing supply down roughly 25 to 30 percent depending on where you’re at in the metro area,” Mullins said.
That’s because many homeowners purchased their homes during peak years, and they are waiting until they can sell their home close to the same price they bought it for.READ MORE: Toddler Killed When Car Rolls Off I-94 Overpass; State Patrol Says Alcohol Involved
That short supply leads to pent up demand.
“There’s competition for these homes when there’s less homes to choose from,” he said.
With a healthy economy, Mullins said there are currently some of the lowest interest rates that we’ll see in our lifetime.
As for the list of those hot spots, Mullins said think first-ring suburbs and proximity to good school districts. Neighborhoods such as Highland Park, southwest Minneapolis, Linden Hills, St. Louis Park, Wayzata, Plymouth, Maple Grove, Eden Prairie, Woodbury, and Chanhassen.
So how is it that a home can sell in just two hours?
Mullins said realtors and brokers often get a tour of some of the homes before they even hit the market.
They then have the inside scoop when the home goes live.MORE NEWS: Kashkari: Delta Variant Could Slow Labor Market Recovery
A tip to winning that bidding war — put together a letter to the seller detailing why you love the home. The emotional appeal may help.