4:24 p.m. Monday, January 29, 2024
Homebuyers faced a triple whammy in 2023: lower inventory, higher interest rates, and higher home prices.
But Brandon Doyle of the Maple Grove-based Doyle Real Estate Team says there is a silver lining in 2024. The number of listings is increasing slightly, but interest rates are decreasing.
“I think we're going to see a very busy spring market,” Doyle said. “Then, depending on how interest rates move, that momentum will either continue into the summer or stabilize across the board.”
Doyle said home buying season traditionally begins after the Super Bowl. But 2023 was anything but typical. Sales in 2023 fell to the lowest level since 2011, according to Minneapolis Area Realtors (MAR). In 2021, it reached its highest level in 20 years.
The number of completed sales in 2023 decreased by 17.6% compared to the previous year.
“Depending on the area of town, we've seen a 20 to 30 percent drop in sales in some areas,” Doyle said.
'Promising' signs for home sales in 2024
The median sales price in the Twin Cities metro area last year was $368,000. It rose by 1.4%. Statistics show that homebuyers will have an income of about $100,000 a year to comfortably afford the median sales price.
Doyle believes this is the biggest opportunity for buyers looking to build new. He also sees activity in and around the northwest suburbs.
“The Hollydale area is booming because Plymouth has really been a luxury market. A lot of people want to get into it. Of course, it costs $1 million to $2 million, so everyone You can’t afford that,” Doyle said.
As a more affordable option, Doyle points to the many new homes being built just outside of Maple Grove.
“So we're looking at Rogers, Corcoran and Dayton. There's a lot of great options for families,” he said.
Single-family home listings increased in Plymouth, Golden Valley, Robbinsdale and Brooklyn Center, according to December statistics from MAR. Elsewhere in the northwest suburbs, the number of properties decreased.
But Doyle expects more people to take action in the coming months.
“I think we'll see a lot of new listings this spring. That's very promising.”
Brooklyn Center | Brooklyn Park | Crystal | Golden Valley | Maple Grove | A New Hope | Osseo | Plymouth | Robbinsdale | Twin Cities
