MINNEAPOLIS (WCCO) — Metro area home prices have climbed to a record high — and people are still willing to pay.

The Twin Cities’ housing market is in high demand, thanks in part to a generation getting ready to settle down.

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The median home price in the Twin Cities in 2017 was $246,000, but don’t tell that to new homeowner Lauren Cox.

“We kind of knew pretty early that this was a serious house for us,” Cox said.

And her St. Paul home came at higher cost than expected. Why?

“We still get the perks of the city, but kind of some of the benefits of a suburb, too,” Cox said.

Those neighborhoods, with the single-family homes within city limits, are in high demand, according to realtor Kath Hammerseng.

(credit: CBS)

A big factor driving costs up is millennials. They make up more than a quarter of the nation’s population, and they are starting to think about the next chapter.

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“They’re wanting to put down roots, they’re getting their student debt under control, their careers are taking off,” Hammerseng said. “Now they’re looking for homes and at the same time we’re looking at interest rates that are really at an all-time low still.”

It is a sweet spot for buyers, especially compared to similar cities nationwide. It is even better if you can play the game, or if you can afford not to.

“Twenty offers, cash, all the stuff that we really couldn’t do, we’re like, ‘Well, let’s plan a bit more money,’” Cox said.

And if you are considering selling, Hammerseng says take these signs of the times as, well, a sign.

“For sellers, it’s a fantastic time,” Hammerseng said.

For buyers, stay patient. Hammerseng’s two cents: Educate yourself on what you can afford and take your time. But there is one rule that’s perhaps the hardest to follow.

“Try not to fall madly in love, because it’s really common for people to write one, two, sometimes six or eight offers,” Hammerseng said.

Those single-family starter homes might be the highest in demand, but when you look at price fluctuation, the west suburbs are a whole different story.

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In 2013, Wayzata’s median home price was $359,000. Last year, it was $905,000.