2022 southeast Minnesota housing market report released

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(ABC 6 News) – The market was hot for sellers before the rising federal interest rates increased. Realtors say it all comes down to supply and demand.

This year, experts are anticipating the housing market to cool down.

The 2022 annual housing report for southeast Minnesota indicates that last year was a competitive year for homebuyers as the number of new listings decreased by almost eight percent.

The rising interest rates also had an effect on homebuyers.

President of Southeast Minnesota Realtors Michelle Jandt says, “So what we saw happen in late last year was the interest rate going from three and half all the way up to seven, and that significantly impact buyers.”

Buyers had to rethink their budget because of the rising interest rates.

“They were looking at $300,000 houses well now with that kind of an interest rate hike it went down to 250,” Jandt said.

The median price for homes in southeast Minnesota also went up from $245,000 in 2021 to $265,000 in 2022.

Realtors say with the low inventory of homes on the market, this benefited sellers.

For example, in 2021 there were 578 homes for sale. In 2022, that number jumped up to 657.

President-elect of the Southeast Minnesota Realtors Joe Skime says, “As a buyer, I would want more inventory because that would help to neutralize the market and that would mean that I would have more options and I might have a little bit more leverage in negotiating as well.”

Experts are predicting that 2023 may favor sellers again.

A lot is dependent on inflation and mortgage interest rates since the FED just increased it last week.
but we won’t know for certain until the spring.